US-China ETF attracts bullish trades

bullShares of the iShares FTSE/Xinhua China 25 Index Fund rose 43 cents to $31.57 in afternoon trade. The exchange-traded fund holds an index of liquid, large-cap Chinese stocks. Its volume was active after a couple of large volume trades were observed in the January 2010 contract, said Andrew Wilkinson, senior market analyst at Interactive Brokers Group in a note. ‘It appears that one investor sold some 30,000 puts at the January $23 strike price for $2.15 apiece’ he said. ‘The sale represents fresh interest at the strike and implies that this trader is now short 30,000 put options.’ He will retain the premium as long as shares stay above $23 by expiration next year. Another investor took a bullish stance at the January 2010 $37 strike price by buying 2,700 calls for a premium of $2.73.

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