Trader takes Bearish Bet in EWY

The investment seeks to track the investment results of an index composed of South Korean equities. The chart looks weak and it seems as if it wants to break the Ichimoku Cloud to the downside. Today, a trader bought 2500 EWY April 58 Puts for $.85. Puts are bought for 1 of 2 reasons, 1. Speculation to the downside or a 2. Hedge against a long position. With this chart looking so weak, I think the trader thinks there is more potential downside and with the breakeven of this trade at $57.15 a trader thinks that EWY can take out the 52 week lows. I have no position in this stock right now, but will be looking to get short if I notice more bearish activity.

Andrew Keene

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