Why trader is selling puts in India fund
Chris McKhann | [email protected]
optionMONSTER systems show that a trader sold a block of 8,000 October 15 puts for the bid price of $0.20. This is clearly a new position, as the strike's open interest was a mere 10 contracts before the session began.
The put selling is a bet that EPI will hold above $15 through expiration in mid-October. The trader collects the risk premium in exchange for the possibility of having to buy the stock if it is below that strike price. (See our Education section)
EPI is down 0.94 percent to $19.02 in early afternoon trading. The exchange-traded fund was at a 52-week high above $20 in mid-January and bounced off support at $18 last week.
The trade made up almost all of EPI's total option volume, which has averaged fewer than 1,600 contracts a day for the last month.