Market News

November 28, 2016  Mon 7:16 AM CT

Traders are looking for a rally in the iShares FTSE/Xinhua China 25 Index Fund.

OptionMonster's monitoring program shows that more than 9,700 December 37.50 calls were purchased for $0.49 and $0.50 on Friday. Volume surpassed the strike's open interest of 7,690 contracts, an indication that new money was put to work.

Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)

FXI rose 0.95 percent to $37.09 on Friday but is down 3 percent in the last month. Overall option volume was about average in the fund, with calls outpacing puts by a narrow margin.

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