Market Overview

Dan Nathan Sees Unusual Options Activity In iShares MSCI United Kingdom Index (ETF)

Share:
Related EWU
Despite A Strong Euro, Investors Are Still Worried About European Stocks
Bank Of England Maintains Interest Rates At 0.25% In The Most Split Vote In 6 Years

On CNBC's Options Action. Dan Nathan spoke about an unusual options activity in iShares MSCI United Kingdom Index (ETF) (NYSE: EWU). Options in this ETF are not very active and on Wednesday 100 times average daily volume was traded.

The most active were the October 21 call options and somebody bought 30,000 contracts for $0.15. Nathan added that it doesn't seem that the premium is expensive, but in many ways it is. He explained that the breakeven for this trade is at $21.15 or five percent higher (EWU closed at $20.15). The implied volatility increased sharply after this purchase.

Posted-In: CNBC Dan Nathan Options ActionOptions Markets Media

 

Related Articles (EWU)

View Comments and Join the Discussion!