A trader set up the long strangle for 2,000 contracts with the December $21 calls and $18 puts for a $2.40 debit.
The trading is making a large bet that EWI will make a large move before December expiration. As you can see, the spread's max risk is limited to the debit. The spread's max profit is unlimited in either direction. EWI closed trading today down $0.51, or 2.74%. The 52-week range is a low of $13.21 and a high of $20.15. This spread accounted for nearly all of the options contracts traded in EWI today.
EWI is the iShares MSCI Italy Index Fund. The Fund seeks to provide investment results that correspond generally to the price and yield performance of publicly traded securities in the aggregate in the Italian market, as measured by the MSCI Italy Index.
The two white lines are the break even prices. For the strangle to be profitable, EWI needs to make a large move up or down by December expiration.
No position at this time. Position declarations are believed to be accurate at time of writing but may change at any time and without notice.