Bullish bets surge! Traders aggressively buy $55 million in CSI 300 ETF call options
The positive manufacturing PMI data boosted market confidence. On Monday, traders spent approximately $55 million to buy call options on a double ETF tracking the CSI 300. This ETF option typically sees light trading, with daily volumes only in the hundreds to thousands, but trading volume has significantly increased since early October
China's economic data improves market confidence, and Wall Street traders' large bullish options trades attract attention.
On Monday, traders spent approximately $55 million to buy call options on a leveraged ETF tracking China's benchmark stock index, continuing the unusual buying observed last Friday.
Specifically, over 200,000 call options for Direxion Daily CSI 300 China A Share Bull 2X Shares (CHAU) were purchased on Monday, allowing holders to buy 20 million shares of the ETF at a price of $15 each at any time before mid-May. At an average price of about $2.64 per share, the total amount exceeds $55 million.
Last Friday, more than 98,000 call options for Direxion Daily 3X Bullish FTSE China ETF (YINN) with a strike price of $27 and expiring in January 2026 were traded, with another 38,000 purchased on Monday.
In the U.S. market, CHAU remained flat at $15.48. The options for this ETF typically see light trading, with daily volumes only in the hundreds to thousands. However, since early October, trading volume has significantly increased, notably occurring after record outflows from Chinese stock ETFs in November.
In addition to CHAU, investors also made large purchases on a more leveraged ETF. Last Friday, call options for Direxion Daily FTSE China Bull 3X Shares ETF with a strike price of $27 and expiring in January 2026 saw a volume of over 98,000, with another 38,000 traded on Monday.
It is worth mentioning that both A-shares and Hong Kong stocks rose on Monday, with the latest data showing improvements in manufacturing activity, indicating that the economy may further stabilize since Beijing launched its stimulus plan in September. These positive economic indicators have boosted investor confidence in the Chinese stock market