Trader bets China fund will hold firm
Chris McKhann | firstname.lastname@example.org
A trader sold blocks of 5,500 and 4,500 April 41 puts for the bid price of $1.64, optionMONSTER systems show. That volume is far above the strike's open interest of 1,823 at the start of the day, so it is clearly new positioning.
The put selling is a bet that the FXI will hold at or above current levels, while the trader is also showing the willingness to buy shares if they are below the $41 strike price. In the latter case the effective buying price would be $39.36. (See our Education section)
The FXI is up 0.4 percent this morning to $41.38. The exchange-traded fund bounced off support at $32 in early November and hit a 52-week high of $41.97 on the first trading day of 2013.