Trade

Bought an EWA Jul 2010 $19 put for $1.35.

This looks like a no-brainer to me. Implied volatility on the trade is 27, and the past year's volatility in the EWA Australian MSCI stock index is about 55. So if we get half the volatility of the last year, it will pay off. In addition, today, with the index dropping $0.90, the option cost only went up $0.35. We'll see if that gamma holds if this thing gets in the money.