The Vanguard FTSE Europe Fund has fallen to its lowest levels in a year, and a big trade today is looking for even more losses.
optionMONSTER’s Depth Charge system shows that a block of 13,033 October 55 puts was sold for $1.48 against previous open interest of 13,205. Seconds later, 13,033 November 53 puts were purchased for $1.05 in volume that dwarfed open interest of just 24 contracts at that strike, so it is a new position.
The trader is closing the near-term puts and rolling and opening a new position at a lower strike one month later, reflecting the VGK’s recent drop. He or she is taking some money off the table while staying in the trade for another month to profit from any further declines.
— Option Monster