CNBC Stock Blog

Contrarian Play: Options Action Bets on Giant ETF

This post was written by OptionMonster's Chris McKhann.

Shares in a key Brazil exchange traded fund are down about 7 percent on the day — but the options action is looking for upside.

The iShares MSCI Brazil Index exchange traded fund is down to $33.47 on the day, while it was up above $40 a week ago. The ETF's shares remain more than 65 percent off their May 2008 high but have been in a slight uptrend (higher highs and higher lows) since hitting a low of $26.64.

One trader is looking for the upside in buying the March 36 calls. One block of 5,000 of those calls were purchased for $3.80, against open interest of 659. This trader is looking for a break back above recent technical resistance levels before that March expiration.

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More Top Global ETFs:

iShares MSCI Emerging Markets Index

Financial Select Sector SPDR

SPDR Gold Shares

iShares FTSE/Xinhua China 25 Index

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Jon 'DRJ' Najarian is a professional investor, CNBC contributor, and cofounder of .

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