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• EWW 100% Rate It

Mexico was strong earlier in the year, and investors aren't ready to give up yet.

optionMONSTER's tracking programs detected the sale of about 3,600 July 51 puts on the iShares MSCI Mexico Investable Market Index Fund, most of which priced for $1.46. There was no open interest in the strike before the trade appeared, so this is a new position.

The investor is betting that the EWW will remain above $51 through expiration. If right, he or she will keep the $1.46 as the puts will expire worthless. Even below that level the trader won't lose money right away because the credit provides a cushion down to $49.54.

Option pricing appears to be part of the logic of the trade because implied volatility in the fund is 29 percent, compared with a 21 percent historical reading. This means that options are expensive relative to the fund's established propensity to move, so it makes sense to sell puts . (See our Education section)

The EWW is down 2.26 percent to $54.46 in afternoon trading and has lost more than 12 percent of its value since the beginning of the month. Shares are back to the same range where they consolidated in the fourth-quarter, which could be leading some chart watchers to expect support to form.

Overall option volume is 5 times greater than average so far today.

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