Options Trading News

April 26, 2013  Fri 2:45 AM CT

Call selling led yesterday's option activity in the iShares Brazil Capped Index Fund.

More than 13,000 EWZ May 57.50 calls traded, compared to the previous open interest of 4,374 contracts at that strike. Almost all of the volume was sold, with the biggest block of 5,000 going for $0.13.

The calls may have been sold naked with an initial bearish bias. Alternatively, they could have been traded against long shares in a covered call position, which would be bullish up to the $57.50 strike price but not beyond. (See our Education section)

The EWZ gained 0.5 percent yesterday to close at $54.56. The exchange-traded fund has been rising for the last week off its 2013 lows and is now in the middle of its recent range. Shares encountered resistance at the $57.50 level six weeks ago. 
Share this article with your friends

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


The fastest money in the market
View full report »

Premium Services

Archived Webinar

Education & Strategy

The covered call and unhedged risk

I have written a few things on the Covered Call Strategy over the last two weeks. Please understand that those two previous articles plus this one do not constitute a proper, fully in-depth lesson on the Covered Call Strategy like we have in our classes at Option Monster Education. I have picked out a few topics that I believe were worth noting and today I am going to add the final one.

View more education articles »