Options Trading News

September 21, 2016  Wed 6:45 AM CT


The iShares MSCI Mexico Index Fund has dropped sharply in the last month, but one large trader is betting that further declines will be limited.

optionMONSTER's tracking programs detected the sale of 6,000 December 44 puts for $1.44 to $1.47 at the same time yesterday. Volume surpassed the strike's open interest of 2,159 contracts, showing that this is a new position.

Short puts lock in a price where investors must buy a stock, while letting them collect premium. Traders use the technique when they like a stock and think that the risk of a big drop is limited. (See our Education section)

EWW fell 0.11 percent to $46.67 yesterday and is down 12 percent in the last month. Overall option volume in the fund was twice its daily average.

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