Canadian stocks have had a tough year, and one large trade is positioning for more potential downside in the iShares MSCI Canada Fund.
optionMONSTER's Depth Charge system identified the purchase of 10,000 January 24 puts for $0.78 at the same second on Friday. This is clearly a new position, as open interest in the strike was just 131 contracts before the trade occurred.
Long puts lock in the price where a stock can be sold no matter how far it might drop, gaining value in a selloff. The contracts can be purchased either as an outright bearish bet or a hedge on a long-stock position . (See our Education section)
EWC slipped 0.32 percent to $24.75 on Friday. The exchange-traded fund has fallen 14 percent since the start of the 2015 as the global rout in commodities threatened to plunge Canada's economy into a recession.
Friday's put purchase made up more than 96 percent of the total option volume in the fund. Only 22 calls traded in the session.
More From optionMONSTER