Russia may be known for bears, but the bulls are taking over.
optionMONSTER's Heat Seeker monitoring program detected the
purchase of 2,750 September
32 calls in the Market Vectors Russia exchange-traded fund for
$0.20. An equal number of September 31 calls were sold at the same
time for $0.60, but volume was below open interest.
This suggests that the investor closed a winning position in the
September 31s and rolled it to the higher strike. He or she
collected a credit of $0.40 in the process and stands to earn
further profits if RSX continues to advance. A similar bullish
trade occurred in
Russian Internet stock Yandex
RSX has been rallying as investors focus on the country's heavy
concentration in resources and energy. Last week's move by the
Federal Reserve to purchase mortgage securities added fuel to the
fire by driving money into commodities.
The central bank in Moscow also stunned investors on Friday with a
surprise interest-rate hike. Given that most other countries are
easing, that could draw capital into ruble assets as well.
RSX rose 1.82 percent to $30.98 in the session and is up 23 percent
over the last three months. Friday's call rolled pushed total
option volume to almost 7 times normal levels.
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