OptionsHouse

Options Trading News

January 25, 2013  Fri 10:14 AM CT

FXI: SEE CHART GET CHAIN FIND STRATEGIES
The iShares China 25 Index Fund has been pulling back this week, but one trader is betting that further downside will be limited.
 
optionMONSTER systems show that a trader sold 9,000 August 36 puts for the bid price of $0.99. The volume was far above the strike's open interest of 1,546 contracts at the beginning of the day, clearly indicating that this is a new position.

The FXI is down 1.5 percent to $40.90 this morning. The exchange-traded fund was near $42 earlier in the week, almost matching its intraday high from the start of the year. Shares were at support at the $36 level in mid-November and down near $32 at the start of September.

Today's put seller is betting that the FXI will hold above that $36 through expiration in mid-August. The trader is also taking the risk of having to buy the shares if they are below that strike price. (See our Education section)
Share this article with your friends


OptionsHouse

Premium Services

Education & Strategy

The Problem with Trading Earnings

AP Options specializes in Swing Trading. Swing trading is the art of locating short term, quick, aggressive movements in a stock normally created by the technicals but, can be sometimes created by the fundamentals. These trades, at least in this service, last a couple of days to a week in the majority of cases.

View more education articles »