OptionsHouse

Options Trading News

October 25, 2013  Fri 3:16 AM CT

DXJ: SEE CHART GET CHAIN FIND STRATEGIES
A large trader is looking for the WisdomTree Japan Hedged Equity Fund to stay trapped in a range.

optionMONSTER systems show that 10,000 December 52 calls were sold for the bid price of $0.25. The previous open interest was just 5 contracts, so this is a new position.

A few minutes later a block 135,000 DXJ shares was bought for $47.74. The combination of stock and short calls creates an overall strategy that is looking for lower volatility than that implied by the options and/or for shares to remain range-bound. (See our Education section)

The DXJ was up 0.78 percent yesterday to close at $47.52, in the middle of its recent range. The exchange-traded fund has seen resistance around $49 going back to May as it came off highs near $54.
Share this article with your friends


Related Stories

DXJ

Bulls ride momentum in Japan fund

February 18, 2015

A large March call purchase is betting that the WisdomTree Japan Hedged Equity ETF will continue rallying in the next month.

Invest Like a Monster - Las Vegas: March 13-14

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Webinar Recording

Turbo Charge Your Trading Profits

Education & Strategy

The Strike-Based Greeks

The other Greeks (Gamma, Vega, and Theta) are calculated by using month and strike data, and not by individual option. These are called strike-based Greeks. Gamma, Theta, and Vega are all strike-based Greeks

View more education articles »