The iShares South Korea Fund has been slipping for all of 2013, but one large trader is looking for a floor.
More than 6,500 EWY options have traded so far today, compared to a daily average of 1,600 contracts in the last month. Dominating that volume is one print in the April 56 puts.
A trader sold 5,000 of those contracts for $1.03, according to optionMONSTER systems. The volume was multiples of the previous open interest of 177 contracts, so this is a new position.
The put selling is a bet that the EWY will hold above that $56 strike price, which has been support going back to early August. The trader is also willing to buy shares at that level in exchange for collecting the risk premium. (See our Education section)
The EWY is down another 1.1 percent today, trading at $59.12. The exchange-traded fund hit a 52-week high of $65 on the first trading day of 2013 and has been slipping since.
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