Learn the trade here. Make it on tradeMONSTER

Options Trading News

January 8, 2013  Tue 3:16 AM CT

EWJ: SEE CHART GET CHAIN FIND STRATEGIES
A long-term bullish trade topped yesterday's option activity in the iShares MSCI Japan Fund even as it fell again.

A trader bought 5,000 January 2015 10 calls for $1.08 and sold 10,000 January 2015 8 puts for $0.48, according to optionMONSTER systems. The volume was well above the previous open interest at each strike, indicating new positioning.

This combination trade, also a ratio spread because of the differing number of contracts, was using the sale of the puts mostly to offset the cost of the long calls. The trader spent only $0.12 to open the position, which is the amount at risk if the EWJ remains above $8. If the stock is below that price, the trader faces assignment the obligation to buy 1 million shares. (See our Education section)

The EWJ finished the day at $9.77, down 0.86 percent but off its session low of $9.72. The exchange-traded fund ended the first day of the year at $9.99, its highest close since gapping down from above $10 at the start of April.
Share this article with your friends


Related Stories

EWJ

Japan ETF keeps faith of this bull

September 29, 2014

A short-term trader is rolling a long-call position forward, buying a bit more time for a pop in shares of the iShares Japan Fund.

EWJ

Notable option trades in equities

September 26, 2014

Nearing the halfway mark in today's session, here are the individual equity names with unusual option activity on optionMONSTER's ActionTracker data system.

Premium Services

Archived Webinar

Options on Futures are Still Options

Education & Strategy

When to go in or out of the money

Some of our subscribers recently asked how to gauge positions that are in or out of the money, so I...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER