KWEB Options Volume Triples With 612,000 Calls as Traders Bet on 23% China Internet Rally
Updated
Updated · CNBC · Jul 1
KWEB Options Volume Triples With 612,000 Calls as Traders Bet on 23% China Internet Rally
3 articles · Updated · CNBC · Jul 1
Summary
628,000 KWEB options changed hands Tuesday—nearly 3 times the 30-day average—with 612,000 calls, showing an unusually one-sided bullish turn in a beaten-down China internet ETF.
More than 250,000 trades were likely call purchases versus fewer than 4,000 put buys, and $46 million of $48 million in premium was tied to calls, underscoring aggressive upside positioning.
The most active contract was the Dec. 18 $29 call, which needs about a 23% rally to break even; the session’s biggest trade bought nearly 102,000 of them for $11 million while selling higher-strike calls.
That options surge followed a three-day, almost 4% KWEB rally after China’s manufacturing returned to growth and services PMI hit its highest level since May, even as FXI remains down 18% this year and KWEB sits more than 40% below its October record.