Even as investors get concerned about China, one options trader is betting that Chinese stocks are going to get much better very quickly.
On Wednesday, as both the Emerging Markets ETF (EEM) and the China Large-Cap ETF (FXI) saw call volume double their average daily volume, one trader made a substantial wager that the FXI will rise 5 percent by the end of February.
Specifically, this trader bought 25,000 February 37-strike calls expiring on Feb. 28 for 37 cents, in a trade that cost a total of $925,000.
What is impressive about this trade is the conviction it implies. This trade will not make money unless the FXI is above $37.37 on Feb. 28, and if it closes below $37, then the entire premium paid will be lost.
(Read more: China factory activity slows to 7-month low)