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September 25, 2013  Wed 10:13 AM CT

EPI: SEE CHART GET CHAIN FIND STRATEGIES
The WisdomTree India Earnings Fund is facing a long-term bearish position.

optionMONSTER systems show that a trader bought 5,000 January 2015 14 puts for the ask price of $1.55 and, at the same time, sold 5,000 January 2015 16 calls for $1.70. This bearish combination trade may well be a protective collar on long shares.

About 50 minutes before this combination appeared, 10,000 January 2016 16 puts were sold for $3 in volume below that strike's previous open interest of 41,000. So it could be that the trader is closing this position and rolling it backward into the 2015 trade. (See our Education section)

The EPI is down fractionally on the day at $15.68. It was hit a low of $12.99 at the end of August and was above $19 in mid-May.

More than 20,000 EPI options have changed hands so far this morning, already triple its full-session average for the last month.
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Options Academy: Ron's Risk Calculation--A Real Life Example

It is rare that I get a chance to give a real-life, real-time example in my articles that the readers were not only following but were actually involved in at the time the event is happening. Well, that is where we are right now in our QQQ trade from last week. Let's recap the trade itself.

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