Paper bought 30,000 FXI August 36.5 calls, with over 25,000 in one block, paying .69 across the board.
iShares FTSE/Xinhua China 20 ETF, trading 32.87 with an IV30 of 27.25 and an HV10 of 22.37, is seeing bullish call action.? The stock, with an ADV of 107,000 and an OI of 2,355,000 contracts, saw an August call outright buyer.? A trader bought 30,000 of the August 36.5 calls trading over 25,000 in one block, paying .69 across the board
This appears to be a pure play on a China rebound the trader is hoping that FXI will break back above 38.00 bucks a share between now and august expiration which is about 4 ? months from now.? There is a chance this is a hedge, but based on duration that seems unlikely.? This trade is opening as OI is 71 contacts on the strike
Trade should be considered aggressively bullish both FXI and vol.