Learn the trade here. Make it on tradeMONSTER

Options Trading News

December 4, 2012  Tue 2:45 AM CT

EWY: SEE CHART GET CHAIN FIND STRATEGIES
The iShares MSCI South Korea Fund has been bumping up against resistance, but yesterday's option activity was dominated by a downside trade.

A trader bought 6,000 December 54 puts for the ask price of $0.09, according to optionMONSTER's Depth Charge system. The previous open interest at the strike was just 81 contracts, so this is clearly a new position.

The EWY was barely higher at the end of the day, closing at $59.65. The exchange-traded fund rose above $60 during the session, its highest level since early October and at resistance going back to its 52-week high of $61.57 on April 4. Shares were down at support at $56 two weeks ago.

Yesterday's long puts were not tied to any stock trades identified by our systems, so they could be an outright bearish play looking for the EWY to drop to prices last seen in July. This could also be hedging against a long position established at an earlier time. (See our Education section)
Share this article with your friends


Related Stories

EWY

Large bullish bet in Korea ETF

November 3, 2014

Heavy call buying sees further upside potential for the iShares MSCI South Korea Fund, which was at a 52-week low just two weeks ago.

Premium Services

Webinar Playback

eSignal "Back in Black": Multi-Speaker Free Webinar

Education & Strategy

Some things aren't what they seem

As we scan the Heat Seeker, Depth Charge, and other option-tracking systems, we sometimes see heavy activity in calls and...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER