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• Navigating through summer muddle
• Emerging markets show strength
• Brazilian ETF faces downside play

• EWZ 100% Rate It

Brazilian stocks have taken a beating since mid-April, and today one investor adjusted a bearish position.

optionMONSTER's Depth Charge tracking system detected heavy put activity in the iShares MSCI Brazil Index exchange-traded fund. Most of the volume occurred when a trader unloaded an existing holding of 20,000 May 75 contracts for $7.76 and replaced them with 40,000 May 66 puts for $1.78.

The transaction allowed him or her to recover $8.4 million of premium, while doubling their downside exposure to increase leverage.

EWZ is up 0.41 percent to $68.25 in midday trading but has fallen 11 percent since April 15. The fund has declined amid concerns about the Greek debt crisis and weakness in materials stocks, despite surging economic growth in the South American country.

Earlier in today's session, EWZ dipped to $65.77, the lowest price since Feb. 25.

Puts account for 85 percent of the options volume in the fund so far today.

(Chart courtesy of tradeMONSTER)

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