Some investors expect the bulls to stampede into Chinese stocks this week.
optionMONSTER's Heat Seeker tracking system detected the purchase of more than 20,000 February 41 calls on the iShares FTSE China 25 Index exchange-traded fund for $0.09 and $0.10 against open interest of just 5,604 contracts.
The FXI is up 1.78 percent to $40.09 in early afternoon trading and is up about 18 percent in the last two months. Those calls expire on Friday, so reflect a belief that the fund will push through $41 in the short term.
A broadly used instrument for tracking Chinese stocks, the FXI has been pushing higher along with the S&P 500--especially as investors regain confidence in the global economy and Beijing indicates that it will loosen monetary conditions to encourage growth.
In another big trade today, a block of 20,000 January 22 puts was sold for $0.62 and an equal number of January 60 calls were bought for $0.06. We can't tell if the position was opened because volume was below open interest in both strikes, but it is also bullish and reflects a belief that the fund will push higher this year.
More From optionMONSTER
European stocks rose for a third straight session on Monday and the euro edged up, as Greek polls showed growing …
There are no comments yet