Japan ETF attracts huge call buying

A huge trade is making a cheap bet that the iShares MSCI Japan Fund will pop in coming weeks.

More than 14,000 October 10 calls traded against open interest of 774 contracts, according to optionMONSTER's Heat Seeker tracking system. The biggest block of 10,000 was bought for the ask price of $0.02, and the rest were picked up a bit later for $0.03.

The EWJ has climbed back to the middle of its 2012 range and finished yesterday up 1.6 percent to $9.36. That is the exchange-traded fund's highest close in two months, with $9.50 as resistance going back to the start of May.

Yesterday's call buyers apparently believe that the EWJ will break back to, or above, the highs from early April as it traded up to $10.21. (See our Education section)

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