Dan Nathan Sees Unusual Options Activity In iShares MSCI Japan ETF

On CNBC's Options Action, Dan Nathan spoke about unusually high options volume in iShares MSCI Japan ETF EWJ ahead of the Bank of Japan meeting next week. Options volume was four times higher than the average daily options volume and the most active were the April expiration calls. When the ETF was trading at $11.40, there was a buyer of 55,000 contracts of the April 12 calls for $0.09 per contract. The trader paid a total of $495,000 and the trade breaks even at $12.09 or 6 percent higher. Nathan explained that the break even is close to the 200-day moving average of iShares MSCI Japan ETF. He added that he wouldn't use out of the money options to make a bullish trade in the ETF and he suspects that the trade is an attempt to leverage up an existing long position.