Traders are piling into this international stock market that just pulled ahead of the Nasdaq
The rally might be tied to commodities, which are also surging, or an expression of optimism around the country's upcoming general election in October.
TL;DR
- Brazilian stocks are rallying, with the iShares MSCI Brazil ETF (EWZ) up 19% year-to-date, ahead of the Nasdaq-100.
- The rally may be connected to surging commodity prices or optimism about Brazil's October general election.
- Options traders are making significant bets on EWZ, with call volume greatly exceeding put volume.
- Despite high call volume, nearly as many calls are being sold as bought, and some call selling might be related to increased volatility.
- Implied volatility in EWZ has risen, making options more expensive and potentially encouraging premium-collecting strategies.