Strategy Looks to Guard Taiwan Position

Puts dominate activity in the iShares Taiwan Fund, which is parked at a three-month high.

More than 10,000 option contracts have traded so far, versus the daily average of 1,600. Almost all of the volume occurred in a single second, when 4,846 of the September 12 puts were sold for $0.07 and block of 5,270 of March 12 puts were bough for $0.75. Volume was below open interest in September but not March.

This could be a new ratio calendar spread. But it is more likely that this is a roll, with the trader buying another six months and slightly increasing the size of the position.

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