tradeMONSTER: Trade free for 90 days

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


Related Stories

FXI

Midday index, ETF option volumes

December 4, 2014

Total option volume remains light at 4.5 million contracts so far today, with relatively bullish sentiment in the primary indexes and ETFs even with the market lower.

FXI

Midday index, ETF option volumes

November 17, 2014

Total option volume is running about average at 5.3 million so far today, with an eye toward hedging the recent highs in the major indexes and ETFs, according to optionMONSTER data systems.

tradeMONSTER: Trade free for 90 days

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Archived Webinar

The Art of Trading: Forgiving the Spread

Education & Strategy

Know thy Greeks!

One of the most important roles played by the Option Pricing Model is the calculation of an important family of...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER