Puts dominate today's option activity in the iShares EAFE Index Fund.
More than 52,000 EFA options have changed hands, already exceeding its total daily average in the last month. Nearly all that volume is in one 2013 trade in the exchange-traded fund, which tracks stocks in Europe and Asia.
A trader bought 25,510 June 40 puts for the ask price of $1 against no open interest at that strike, according to optionMONSTER's Depth Charge system. Seconds later 25,510 June 35 puts were sold for $0.51 against open interest of more than 31,000 contracts, so that could have been an opening or closing transaction.
The EFA is down 1.14 percent this morning to trade at $53.36. It traded above $55 last week, the fund's highest level since its 52-week highs in March. Shares were down at support at $45 in early June.
The trader could be rolling puts to the higher strike or opening a new vertical spread. In either case, they end up long those June 40 puts. That is quite far out of the money, which may suggest that this is an outright bearish play as opposed to a hedge against a long position in the fund. (See our Education section)
Options Trading News
Related Stories
EFA
Downside play in Europe-Asia fund
May 3, 2013
The iShares EAFE Index Fund has climbed to a two-year high, but a large put spread is looking for shares to trade lower by autumn.
EFA
Show of support in Europe-Asia ETF
April 29, 2013
The iShares EAFE Index Fund is at 52-week highs, and one huge trader apparently believes that any pullbacks in the global ETF will be limited in the next few months.
Social Media
Follow optionMONSTER for news and updates
Premium Services
-
Semi-active traders looking for simple calls and spreads (5 per week).
Learn More -
Entry-to-mid level traders looking for full circle trade analysis (1 per week).
Learn More -
Tailored, one-on-one education designed and led by Jon & Pete (3 months and up)
Learn More
