Earlier today, there was a large call purchase to close in which paper closed just under 115,000 FXI Jan 37 calls for .045.
iShares FTSE/Xinhua China ETF is trading at 33.90 and has an IV30 of 28.37, an HV10 of 24.65, an ADV of 95k contracts and current OI of 3.5 million.
Earlier today, there was a large call purchase to close in which paper closed just under 115,000 of the Jan 37 calls for .045.
?On December 21st a customer sold over 100,000 of the Jan 37 calls at .38, likely an overwrite against stock to create income.? With the ETF off about $2 form that point, the calls are now essentially a worthless and the customer decided, with China now back intervening in its stock market, it might make sense to cover his or her short call positions for a small premium thus ensuring a profit.
This trade should be considered mildly bullish the underlying and the stock and mildly bullish volatility in FXI.