EWW , the iShares Mexico etf , saw unusual call volume today, about 10x average daily, and equaling about 50% of the current call open interest. Most of the volume came in two trades, one a total long shot, and the other with about a 30% probability of being in the money on Nov 18th.
First when the EWW was trading $49.78 shortly before noon at the highs of the day, a trader paid 84 cents for 10,000 of the Nov 53 calls to open. These calls break-even at $53.84, up about 8% from the trading level, very near the August high:
The other trade looked to be a bit of a lotto ticket. When the EWW was trading $49.50 about an hour after the previous trade, a buyer paid 10 cents for 20,000 of the Dec 57 / 58 call spreads. This call spread breaks-even at $57.10, can make up to 90 cents between $57.10 and $58, with max gain above. Basically risking $200,000 in premium to possibly make up to $1.8 million in the 10% chance the etf traded above $58 by Dec expiration.
The EWW is flat on the year, and down about 10% from its 2016 highs. Taking a slightly longer term view, the etf seems to have healthy technical support just below current trading levels near $46-47, and healthy resistance at $55:
