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Options Trading News

October 4, 2012  Thu 10:41 AM CT

EFA: SEE CHART GET CHAIN FIND STRATEGIES
The iShares EAFE Index Fund has been drifting lower, but one large trade is betting against a collapse in the next year.

The exchange-traded fund, which tracks stock in Europe and Asia, is up 0.9 percent at $53.91 this morning. The EFA has been trending lower since trading up to $55.58 on Sept. 14, its highest price since reaching a 52-week high in March.

optionMONSTER's systems detected the sale of 10,000 September 2013 40 puts for the bid price of $1.29. Open interest in the strike was just 425 contracts at the beginning of the day, so this is a new position.

The put selling has an initial bullish bias but can profit with the EFA anywhere above $40 at expiration about a year from now. (See our Education section)
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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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