Market News

October 25, 2013  Fri 3:16 AM CT

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.
News Archives
OptionsHouse

Education & Strategy

Election Sector Rotation

Sector rotation is the process where mutual funds, portfolio managers, and investors in general, shift their investments from one sector of the economy to another.

More education articles »