Taiwan ETF Sees Bearish Options Trade (EWT)

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The iShares MSCI Taiwan Index (NYSE: EWT), the primary ETF tracking Taiwan equities, is seeing some bearish options trading today, with the purchase of more than 31,000 December 12 puts and the sale of a similar number December 13 calls.

Take a look at the chart and you'll see that EWT gapped up on Monday, but was unable to hold the $13.20 area, a range that was formerly a support area that may now be acting as resistance.

The trade will be profitable if EWT falls below $12 and the trade will lose money if it rises over $13 because of the short position in the calls.


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