As the iShares MSCI Mexico Fund continues to fall, option traders see limited upside.
The EWW trades at $54.43, down 0.43 percent on the day. The exchange-traded fund reached a high of $56.05 yesterday before giving up that ground. Shares are now back near last week's lows, their weakest prices for 2012, after hitting a 52-week high of $63.84 just two months ago.
A trader sold 2,000 September 59 calls for $1.17 and 4,310 September 58 calls for $1.48, according to optionMONSTER's systems. The volume at each strike was well more than open interest, and it does appear that both were sold.
These trades anticipate limited upside for the EWW. The calls may have been sold naked with an initial bearish bet or against long shares as a covered call. In either case the trader doesn't see much upside beyond those strikes.
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