EWZ Options Volume Jumps 6-Fold to 420,000 as Brazil ETF Extends 19% Gain
Updated
Updated · CNBC · Sep 2
EWZ Options Volume Jumps 6-Fold to 420,000 as Brazil ETF Extends 19% Gain
1 articles · Updated · CNBC · Sep 2
Summary
420,000 EWZ options had traded by midday Wednesday, pushing volume to more than six times its 30-day average as traders piled into bullish Brazil ETF bets.
400,000 call contracts changed hands versus fewer than 30,000 puts, and the top 20 traded contracts were all calls, though flow data suggest nearly as many calls were sold as bought.
$50 million in premium traded, with $48 million tied to calls and about $26 million likely buyer-initiated, leaving the activity bullish-leaning but not a clean directional signal.
EWZ has rebounded more than 12% from last month's lows and is up 19% this year, outpacing the Nasdaq-100's 15% gain as commodities rise and investors eye Brazil's October election.
implied volatility climbed to 0.39 from 0.28 over the past three weeks, making options the priciest since late June and encouraging premium-selling or volatility-driven strategies alongside outright bullish bets.
With massive call options betting on Brazil's October election, are traders anticipating a historic boom or walking into a volatility trap?
Can rising commodity prices sustain Brazil's dramatic stock market rebound, or will next month's fierce presidential showdown derail the momentum entirely?