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Brazilian stocks get vote of confidence

Chris McKhann (chris.mckhann@optionmonster.com)

The iShares Brazil Fund is testing a multi-month resistance level, and one trader is betting on a floor beneath its shares.

optionMONSTER systems show that a trader sold 6,088 June 54 puts for the bid price of $1.54. The volume was more than 4 times the previous open interest at the beginning of the day, so this is clearly a new position.

The put selling is a bet that the EWZ will hold above $54 through that June expiration. The trader is also willing, or perhaps even eager , to buy shares on a pullback below that strike price. (See our Education section)

The EWZ is up 0.63 percent to $57.13 in midday trading. The exchange-traded fund has resistance just below $58 that goes back to early May when shares slid from their 52-week highs.

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