OptionsHouse

Options Trading News

February 6, 2013  Wed 3:47 AM CT

FXI: SEE CHART GET CHAIN FIND STRATEGIES
Huge put sales topped option trading in the iShares FTSE China 25 Fund yesterday.

First a trader sold 10,000 January 2014 34 puts for the bid price of $1.41 in volume that was well above the strike's previous open interest of 3,075 contracts. A little over an hour later, 50,000 March 39.50 puts were sold for $0.58 against open interest of 2,256, according to optionMONSTER systems.

The put sellers are betting that the exchange-traded fund will remain above their respective strike prices. The traders collect the risk premium in exchange for the potential for having to buy shares if they are below those levels by the January 2014 and March expirations. (See our Education section)

The FXI was unchanged on the day, finishing at $40.63. Thursday's close was just below that from the first day of 2013. Shares have been trending higher from support at $32 in early September.
Share this article with your friends


Related Stories

FXI

Cramer: Hurt by China, Greece

May 29, 2015

Without acceleration in growth in China and with the instability of the euro, it is hard to go higher just on the backs of takeovers, even when they are bountiful.

OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Archived Webinar

Education & Strategy

Long synthetic call

Long and short Synthetic stock are two of the six basic synthetic positions that exist. Number three on our list is the Synthetic Long Call...

View more education articles »