Show of support in Europe-Asia ETF

optionMONSTER

The iShares EAFE Index Fund is at 52-week highs, and one huge trader apparently believes that any pullbacks in the global ETF will be limited in the next few months.

optionMONSTER systems indicate that 131,421 June 57 puts were bought for $0.47 against previous open interest of just over 166,000 while the same number of July 58 puts were sold for $1.11 in volume that dwarfed the open interest of just 180 at that strike.

A trader appears to be rolling a short-put position out a month and up $1 in the strike price. That results in a bet that the EFA will hold up above $58 through expiration in mid-July. (See our Education section)

The EFA up fractionally on the day to $61.08, but that was enough for a 52-week closing high. The exchange-traded fund, which tracks stocks in Europe, Asia, and Australia, was below $47 last June.

More than 313,600 EFA options traded overall on Friday, compared to daily average of 56,000 in the last month.


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