Japan fund receives a vote of confidence
A trader apparently believes that there is little downside risk in WisdomTree Japan Hedged Equity Fund.
optionMONSTER's tracking programs detected the sale of 2,469 January 49 puts for $0.99 at the same second this morning. Volume surpassed open interest of 1,105 contracts, an indication that new money was put to work.
Short puts lock in a price where investors must buy a stock, while letting them collect premium. Traders use the technique when they like a stock and think that the risk of a big drop is limited. (See our Coaching section)
DXJ is down 2.75 percent to $48.71 in early trade today and has fallen 10 percent in the last month. Japanese stocks dropped sharply with other Asian markets overnight.
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