OptionsHouse

Options Trading News

June 26, 2013  Wed 4:14 AM CT

FXI: SEE CHART GET CHAIN FIND STRATEGIES
A large trader is looking for lower volatility in the iShares China 25 Fund.

optionMONSTER systems show that a block of 20,000 FXI August 31.50 puts traded for $1.43 on a penny-wide spread. The previous open interest was 747 contracts, so this is a new position.

About a minute later, the largest block of FXI stock traded when a print of 940,000 shares was sold for $31.5913. The combination of the stock sale and the short puts creates a delta-neutral play that will profit from lower volatility than that implied by the options. (See our Education section)

The FXI rose 1.93 percent to finish the session at $31.70 after hitting a new 52-week intraday low. Shares were at a 52-week high of $41.97 on the first days of 2013 and were above $38 a month ago. The implied volatility of the FXI options is up to 34 percent, double where it was a month ago.
Share this article with your friends


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

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 »