iShares Brazil Fund (EWZ) adds 41 cents to $61.23 and a May 59 – 63 strangle is bought on the ETF for $1.49, 8000X. Hearing it was tied to shares at $61.20 (delta neutral). The same strangle traded again for $1.50, 4000X, and, at about the same time, a Jun 61 straddle was apparently bought on the iShares Mexico Fund (EWW) for $4.25, 3250X. While the strangles and straddles might offset existing positions, the premium purchases seem to reflect expectations for heightened volatility in global financial markets in the weeks ahead.
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.