Traders Pile into Bullish China ETF Wagers After Trump-Xi Call
- Option volatility, call premium over puts rise as ETFs rally
- This week’s buying follows previous bullish wave in September
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Traders snapped up bullish option bets Friday on exchange-traded funds linked to Chinese stock indexes after US President-elect Donald Trump and Chinese President Xi Jinping discussed trade and other topics.
Call options were bought in iShares China Large-Cap ETF (ticker FXI) allowing the holders to purchase some 4 million shares by the end of next week at levels from $31-$32, with additional buying for February expiration, according to Chris Murphy, co-head of derivatives strategy at Susquehanna International Group. Similar calls were in demand for other China-linked funds, including KraneShares CSI China Internet ETF (ticker KWEB).