Big Print in the iShares Xinhua China Fund (FXI) after 36K Nov 35 puts traded for $1.35 on the AMEX. It was a buyer, according to an exchange-floor contact. 46K now traded, compared to open interest of 96K. Earlier, a multi-exchange sweep hit, including 2700 contracts on the ISE for $1.30, which was an opening customer buyer. This looks like big put buyers and surfaced just before the major averages started slipping in morning trading. Recall (premium subscribers), big put spreads (Oct flys and bear put spreads) surfaced in FXI last week when the fund was just above $40. We discussed in detail and could still make some sense for those looking for some negative deltas heading into a historically volatile period for the equity markets.
Category: All ETFs
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.