What’s behind put surge in China ETF

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Put buying dominates option trading in the iShares FTSE China 25 Index Fund at its highest level in six weeks, but it could be hedging.

The FXI is up 0.7 percent to $34.45. The exchange-traded fund hasn’t been higher for more than a day since mid-May, and shares were down at support and 2012 lows around $32 in late June and mid-July.

Most of the option volume in the name today is in one print in the August 34 puts. A trader bought 21,005 of those contracts for the ask price of $0.58 with volume higher than open interest at the start of the session, so this is a new position.

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— Option Monster