India is rallying election results, and the bulls are piling in.
optionMONSTER's Heat Seeker monitoring program detected a surge of activity in the WisdomTree India Earnings exchange-traded fund, whose holdings include conglomerate Reliance Industries, IT giant Infosys, and Oil & Natural Gas Corp.
Call buying in the dominant theme, with traders snapping up the May 21s for $0.45 early in the session, followed by the June 20s for $1.25 to $1.40 later in the morning. Volume surpassed 6,500 contracts and 13,000 contracts, respectively.
Those trades were straight-up bullish, letting investors lock in buy prices for EPI in coming weeks. That way they won't miss a rally and stand to enjoy leveraged gains if the fund continues to advance.
EPI is up 3.14 percent to $20.38, adding to a gain of almost 4 percent on Friday. It's been surging after exit polls indicated that Narenda Modi will take the reins in New Delhi. Not only is he considered pro-business, but his victory also sets the stage for a strong coalition government able to implement needed reforms.
Another investor placed a major bet that Indian stocks will remain firmly bid. He or she bought back 10,000 June 17 puts that had been sold to earn income, paying $0.18. They in turn sold an equal number of June 20 puts for $0.80, netting a credit of $0.62. (See our Education section for more on the risks and benefits of writing puts .)
Total option volume is 16 times greater than average in EPI, making it the 13th most active instrument in the market today. It's normally not even in the top 100.
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