15,000 EWJ Sep 12 calls traded at 0.21 tied to stock.?
iShares MSCI Japan ETF, trading 11.81 (down .05) with an IV30 of 18.63 and an HV10 of 14.44, saw a big call seller today.? The stock, with an ADV of 12500 and an OI of 495,000, saw a customer sell 15,000 of the Sep 12 calls at 0.21 tied to stock.? The strike has open interest from 2 20,000 lots that traded a few weeks ago.? This appears to be additive to the trade not subtracting from the open interest
This is likely a customer that is selling calls against a stock position in the hope collecting premium and the expectation that little will happen in EWJ over the next few months.? The customer runs into problems if EWJ moves too much either up or down.? The trade does extremely well if the market creeps higher between now and expiration
The trade is neutral the stock and bearish volatility.