The iShares MSCI Japan Fund is underperforming in today's broad market rally, but a large trade sees the stock's current levels holding.
The EWJ is up fractionally at $9.19 in early afternoon trading. Shares were down at support around $8.80 a month ago but climbed to resistance at $9.50 a week later. That has been most of the range for the fund going back to April.
Almost all of today's volume in the EWJ is in one trade, the sale of 10,000 November 9 puts for the $0.16. Open interest in the strike was just 513 at the beginning of the day, so this is a new position.
The put seller sees the EWJ holding above $9 through expiration in coming weeks. The trader is also showing a willingness to buy shares on a pullback below that level. The put sale has a bullish bias, but is not overly so, or else the trader would simply buy shares. (See our Education section)
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