Bear bites into Hong Kong stocks

By
A A A

Hong Kong stocks have been rallying hard, and now the options are turning bearish.

EWH Our Depth Charge monitoring program detected the purchase of 11,000 November 19 puts on the iShares MSCI Hong Kong Index Fund, most of which priced for $0.10, against open interest of 114 contracts. The trade pushed total option volume in the fund to twice the average level.

The EWH rose 0.4 percent to $19.95 in afternoon trading and is up 30 percent in the last six months, outpacing gains for both the Chinese mainland and other emerging markets. The fund is now hitting resistance around the same $20 level where it peaked in mid-2008 before collapsing along with other Asian stocks.

The Hong Kong ETF needs to drop about 5 percent by expiration for the contracts bought today to turn a profit.

Puts in the fund outnumber calls by a bearish 130-to-1 ratio so far today.

(Chart courtesy of tradeMONSTER)



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.


This article appears in: Investing , Options

Referenced Stocks: EWH

optionMONSTER

optionMONSTER

More from optionMONSTER:

Related Videos

Cheap Ways to Sleep Better
Cheap Ways to Sleep Better          

Stocks

Referenced

Most Active by Volume

105,679,298
  • $16.13 ▼ 0.19%
43,130,824
  • $101.32 ▲ 0.74%
24,108,376
  • $59.80 ▲ 7.34%
22,524,427
  • $26.15 ▼ 1.06%
22,194,114
  • $24.65 ▼ 0.96%
21,835,360
  • $99.05 ▲ 0.15%
20,872,575
  • $34.94 ▼ 0.60%
20,561,803
    $74.57 unch
As of 8/22/2014, 04:02 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com