A large trade is betting on a ceiling above shares of the iShares MSCI South Korea Fund even as it rebounds.
optionMONSTER's systems show that a trader sold 10,000 December 57 calls for the bid price of $1.82. The volume dwarfed the strike's open interest of just 298 contracts at the start of the day, so this is clearly a new position.
Because these options are in the money, they were very likely sold against long shares in a covered call strategy. The trader therefore sees little movement in the shares, getting a small cushion to the downside and giving up any gains in the stock. (See our Education section)
The EWY trades at $57.30, still down 0.63 percent on the day but rebounding from the morning low of $56.91. The exchange-traded fund has generally been trending lower since rising above $61 in mid-September, though longer term it is up from support at $51.
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