Are German stocks ready to bounce?
Pete Najarian | [email protected]
Several large blocks were bought in the October 21 calls for $0.25 and $0.35, according to optionMONSTER's Heat Seeker system. Activity at that strike did not begin until the final hour of the session, when more than 9,000 of the options changed hands.
Under prolonged pressure from the Eurozone's debt crisis, the German ETF is down about 30 percent in the last three months and has been bouncing along its 52-week lows. But yesterday it rallied 3.61 percent to $18.39 and closed near the session's highs.
For the calls purchased yesterday to turn a profit, the fund's shares would need to gain roughly 16 percent by expiration on Oct. 21.
Overall more than 12,000 calls traded versus fewer than 1,200 puts in the ETF.
(A version of this post appeared on InsideOptions yesterday.)