Options Trading News

March 12, 2013  Tue 11:27 AM CT

The WisdomTree India Earnings Fund is down today, but one trader is betting on a floor beneath the stock.

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.
Share this article with your friends

Related Stories


Trader extends puts in India fund

September 15, 2015

The WisdomTree India Earnings Fund is down more than 8 percent in the last month, but shares have been drifting higher in recent days.


Premium Services

Archived Webinar

Education & Strategy

Options Academy: More on the Covered Call Strategy

Last week, we talked about the Covered Call and the misconceptions that surround it. We spoke about how an investor must realize that the Covered Call is actually a premium collection strategy and not so much a directional one. If an investor can grasp this idea, the investor stands to do a heck of a lot better in the strategy than they currently do.

View more education articles »