Downside play in Europe-Asia fund

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The iShares EAFE Index Fund has climbed to a two-year high, but a large position is looking for it trade lower by autumn.

optionMONSTER's Depth Charge system shows that a trader bought 17,140 September 56 puts for the ask price of $0.79 and sold the same number of September 49 puts sold for their bid price of $0.20.

This bearish vertical spread cost $0.59, which is the amount at risk if the EFA remains above $56 through expiration in mid-September. The spread is $7 wide, so the maximum gain would be $6.41 if shares are below $49 at that time. (See our Education section)

The exchange-traded fund, which tracks stocks in Europe, Australia, and Asia, is up 1.21 percent this morning to $62.51. While this the EFA's highest level since May 2010, shares remain well off its peaks of 2007. The fund was last below $49 in late July.

More than 55,000 EFA options have changed hands already this morning.

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