tradeMONSTER: Trade free for 90 days

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


Related Stories

FXI

Midday index, ETF option volumes

December 4, 2014

Total option volume remains light at 4.5 million contracts so far today, with relatively bullish sentiment in the primary indexes and ETFs even with the market lower.

Invest Like a Monster - Las Vegas: March 13-14

Premium Services

Archived Webinar

The Art of Trading: Forgiving the Spread

Education & Strategy

Know thy Greeks!

One of the most important roles played by the Option Pricing Model is the calculation of an important family of...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER