Shares of the iShares MSCI Brazil Index Fund (EWZ) are trading higher on the session by 1.26%, at $55.29. The fund has been consolidating over the past six weeks following a failed attempt on the downward-trending 200-day moving average.
There has been an influx of activity on the fund today, with call volume reaching over half of the average daily volume within the first hour of trading. 52% of all calls traded have been purchases on the offer with 61% that being over 5% OTM.
The most bullish action is coming on the December $62.00 call, which was purchased 5,000 times, on the offer, for $0.20. Open interest on the strike is 39,836 contracts.
In smaller, though still bullish action, the October $56/57 call spread was purchased 500 times for $0.14. The November $55/57 call spread was also bought 500 times for $0.90.
On the other side of the coin, there has also been some cautious activity on the EWZ. A short while ago, the December $59.00 call was sold 5,500 times, on the bid, for $0.67; given current open interest of 2,548 contracts, this is clearly new positioning.
30-day implied volatility is off 3.9% today to 21.68%; 10-day historical vol is registering 13.05%.
The iShares MSCI Brazil Index Fund seeks investment results that correspond generally to the price and yield performance before fees and expenses of the MSCI Brazil Index.?