This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Japan Fund Draws Big Bullish Bet

By Mike Yamamoto, managing editor of OptionMonster

NEW YORK -- A large bullish bet is targeting the WisdomTree Japan Hedged Equity Fund (DXJ), which has been rallying for more than four months as the country tries to revive its long-stagnant economy.

A trader purchased 7,600 May 47 calls at the same second on Friday for 65 cents, according to OptionMonster's tracking systems. This is clearly a new position, as open interest in the strike was a mere eight contracts before the day's trading began.

The fund rose 1.44% on Friday to finish the week at $44.51, its highest close since September 2008. The ETF, which tracks major Japanese equities while adjusting for currency fluctuations, has soared more than 40% since last November with unprecedented stimulus policies from the Tokyo government and the Bank of Japan.

Friday's long calls, which lock in the price where traders can buy the stock, are looking for the fund to gain another 7% or more by mid-May. These contracts could be sold earlier at a profit if their premiums rise with a rally before then, but they will expire worthless if the stock remains below the $47 strike price.

The fund saw total option volume of 13,351 contracts on Friday, eight times its daily average in the last month. Calls outpaced puts by more than 5-1, a reflection of the day's bullish sentiment.

Yamamoto owns DXJ shares.
This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.03 -2.90%
FB $116.73 7.20%
GOOG $691.02 -2.10%
TSLA $247.54 -1.60%
YHOO $36.59 -0.97%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports