Options Trading News

November 19, 2013  Tue 9:16 AM CT

Traders are betting further upside will be limited in the iShares China Large Cap Fund.

More than 18,000 December 41 calls have traded in volume well above the strike's previous open interest of 8,940 today, according to optoinMONSTER systems. The big block of 14,500 was sold for the bid price of $0.67.

The calls could have been sold naked with an initial bearish bias. But it is more likely that they were traded against long shares in a covered call position, which would be bullish but only up to the strike sold. (See our Education section)

The FXI is up fractionally to $39.92 this morning.  The exchange-traded fund has jumped from support at $36 in the last week. It is now at the highest levels since February. 
Share this article with your friends


Premium Services

Archived Webinar

Education & Strategy

The covered call and unhedged risk

I have written a few things on the Covered Call Strategy over the last two weeks. Please understand that those two previous articles plus this one do not constitute a proper, fully in-depth lesson on the Covered Call Strategy like we have in our classes at Option Monster Education. I have picked out a few topics that I believe were worth noting and today I am going to add the final one.

View more education articles »