OptionsHouse

Options Trading News

January 17, 2013  Thu 11:13 AM CT

FXI: SEE CHART GET CHAIN FIND STRATEGIES
The iShares FTSE China 25 Fund has been running higher in recent months, and one large trader is apparently counting on those gains sticking.

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.
Share this article with your friends


OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Education & Strategy

The Movement of Delta

In our last column, we spoke about delta. You might remember that we discussed what delta was and what factors affected or changed delta. As you recall, we stated that three factors will have an effect on delta. They were movements of time, volatility, and underlying price. Today, we want to take a further look into the change of delta, this time focusing on change due to the movement in the underlying price. 

View more education articles »