OptionsHouse

Options Trading News

August 1, 2012  Wed 10:41 AM CT

FXI: SEE CHART GET CHAIN FIND STRATEGIES
Put buying dominates option trading in the iShares FTSE China 25 Index Fund at its highest level in six weeks, but it could be hedging.

The FXI is up 0.7 percent to $34.45. The exchange-traded fund hasn't been higher for more than a day since mid-May, and shares were down at support and 2012 lows around $32 in late June and mid-July.

Most of the option volume in the name today is in one print in the August 34 puts. A trader bought 21,005 of those contracts for the ask price of $0.58 with volume higher than open interest at the start of the session, so this is a new position.

It is possible that the put buying is an outright bearish play. However, given the market dynamics and potential stimulus measures in China and elsewhere around the world, it seems more likely that this is hedging against a long position. (See our Education section)
Share this article with your friends


Related Stories

FXI

Cramer: Can bad actually be good?

August 4, 2015

Maybe the stock market is an abstraction, full of sound and fury but signifying nothing. If that's the case, then you need to think of buying what hedge funds all seem to be shorting.

Invest Like a Monster - San Antonio: October 9-10

Premium Services

Archived Webinar

Education & Strategy

Options Academy: Ron's Risk Calculation--A Real Life Example

It is rare that I get a chance to give a real-life, real-time example in my articles that the readers were not only following but were actually involved in at the time the event is happening. Well, that is where we are right now in our QQQ trade from last week. Let's recap the trade itself.

View more education articles »