Markets

Global bulls banking with ICICI

ICICI Bank is lighting up our scanners as investors clamber for exposure to international stocks.

optionMONSTER's Heat Seeker shows the purchase of almost 4,800 May 11 calls today, most of which priced for $0.34. Volume was more than 20 times open interest at the strike, an indication that new money was at work.

Long calls lock in the level where a stock can be bought. That provides cheap exposure to a rally, which can also result in significant leverage on a percentage basis if the shares move higher. (See our Education section.)

IBN is down 0.19 percent to $10.67 in afternoon trading. The Mumbai-based lender has pulled back since hitting a seven-year high of $13.24 in late January as Indian equities consolidate following a huge rally in 2014. There was also a bullish trade in the name one week ago as investors positioned for a long-term move using January contracts .

Overall option volume in the name is quadruple the average amount, with calls accounting for a bullish two-thirds of the total.

Today's activity comes at a time when our researchLAB price analyzer has already detected a sentiment shift in favor global stocks. The S&P 500 has not only slid near the bottom of performance rankings compared with other major country indexes, but commodities and emerging markets associated with global growth have also started to move as the U.S. dollar weakens.

The Heat Seeker also showed bullish paper today in the WisdomTree India Earnings Fund (EPI), the iShares MSCI Brazil Fund (EWZ), the Market Vectors Russia Fund (RSX), and the Vanguard FTSE Europe Fund (VGK).

Several catalysts are also supportive of the international theme: strong economic data in Europe, weakening numbers in the U.S., gradual progress on the Greek debt crisis, a nuclear pact with Iran, and hopes of economic stimulus in China.

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

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


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

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