Traders are piling into this international stock market that just pulled ahead of the Nasdaq — SkimNews
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- iShares MSCI Brazil ETF (EWZ) is up more than 12% from last month's lows and 19% year-to-date, surpassing the Nasdaq-100's 15% advance.
- EWZ options volume surged to more than six times the 30-day average on Wednesday, with over 420,000 contracts traded by midday (Cboe LiveVol).
- EWZ ranked as a top-20 traded security in the options market alongside Alphabet and the Cboe VIX Index (SpotGamma) — a rare placement for any non-U.S. stock or ETF.
- Calls on EWZ totaled roughly 400,000 versus fewer than 30,000 puts, with about $48 million of $50 million in total premium tied to calls (ThinkOrSwim and SpotGamma).
- EWZ's top 20 contracts traded were all calls, and roughly $26 million of call premium was likely initiated by sellers, pointing to bullish spreads or volatility-selling strategies rather than pure directional bets.
- EWZ implied volatility climbed from 0.28 to 0.39, the highest since late June, which may explain why so many traders are selling calls into the rally (ThinkOrSwim).
- Surging commodities and optimism around Brazil's general election in October are cited as potential catalysts for the EWZ rally.
Why it matters: EWZ's 19% YTD gain has outpaced the Nasdaq-100's 15%, but the call-heavy flow isn't a straightforward bullish bet: all 20 top-traded contracts were calls, yet roughly $26 million of $48 million in call premium was likely seller-initiated — consistent with traders harvesting the fund's spike in implied volatility from 0.28 to 0.39 rather than purely directional conviction.
Ask SkimNews
