Germany fund sees large call sale
Chris McKhann | [email protected]
More than 8,200 options have traded in the EWG, compared to a daily average of just 686 in the last month. Almost all of that volume was in a single trade.
optionMONSTER's scanners detected the sale of 8,192 August 26 calls in one print for $0.57. This is clearly a new position, as open interest in the strike was only 169 contracts before the trade appeared.
The calls were almost certainly sold against a long position in EWG stock because those contracts are in the money. The trader in that case is betting that the exchange-traded fund will see little upside in coming months but not much downside either, as covered-call strategies work best in a range-bound market. (See our Education section)
The EWG is up fractionally to $26.13 in midday trading. It hit a two-year high at $26.84 a month ago and bounced off support at $24 at the start of this month.