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Russian stocks see a show of support

David Russell (david.russell@optionmonster.com)

Slowly but surely, sentiment is warming toward Russian stocks.

Yesterday our Heat Seeker monitoring system detected a bullish combination trade in the Market Vectors Russia ETF. A trader bought the April 29 calls and sold the April 29 puts for a net cost of zero. That position has now expanded to $0.20.

Today traders are selling more of the April 29 puts, this time for $0.60, while buying the April 28 puts around the same time for $0.35. This indicates that traders are opening a new credit spread .

The investor collected income of $0.25, which he or she will keep as profit if RSX remains above $29 through expiration. The most that can be lost is $0.75 if the stock is at or below $28. (See our Education section)

RSX is up 0.93 percent to $29.32 in early afternoon trading. While it's lagged most other stocks globally, the exchange-traded fund is trying to hold support above its 200-day moving average, which could be leading some chart watchers to believe that it will push higher.

Total option volume is more than twice the daily average in RSX so far today.

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