EFA is seeing about 10X ADV with calls outpacing puts by 3-to-1.?
iShares MSCI EAFE Index Fund, trading 55.25 (down 1.07) with and IV30 of 28.85 and an HV10 of 18.5, is seeing lots of call action today.? The ETF with an ADV of 34,000 contracts and OI of 1,332,000 contracts is seeing about 10X its average daily volume with calls out pacing puts by 3 to 1.? The largest trade was an outright call buy.?? A customer bought 80,000 of the July 59 calls paying .18 outright, untied.
This is likely an outright play on Brexit either not happening or its ramifications not being nearly as great as the market thinks it might be.? EFA was trading above 59 recently and this trade has over a month to succeed, which is AFTER the big vote.? The customer is looking for a settle above 59.18 for a win on this one.
This trade is aggressively bullish both vol and the underlying.