Taiwan stocks have been stepping up, and the bulls are stepping
optionMONSTER's Heat Seeker monitoring program detected the
purchase of 20,000 December 14 calls in the iShares MSCI Taiwan ETF
for $0.55 yesterday. An equal number of December 13 puts was sold
at the same time for $0.36, resulting in a net cost of $0.19.
Volume was more than 10 times the previous open interest in each
strike, indicating that new positions were initiated.
locks in where shares can be purchased in the EWT, and
generates income while obligating the investor to buy them at a
loss in the event of a decline. Combining the two strategies is
very bullish, resulting in a trade that's highly leveraged to
movements in the underlying price. (See our
The EWT began yesterday's session up 6.5 percent in the last week
and ended the day up 0.65 percent at $13.96. That made it the
second-best performer of 19 country funds tracked by our
market scanner, behind the iShares MSCI South Korea (EWY).
Accelerating growth in China has driven the gains in Asian markets.
Total option volume in the exchange-traded fund was 38 times
greater than average in the session, according to the Heat Seeker.
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