Analysts at Susquehanna have identified a major bearish options trade made against a popular Europe-focused ETF, which could be subject to increasing volatility as France’s presidential election looms in April.

Bloomberg has the details on the major move:

Bears are targeting a U.S.-listed exchange-traded fund that follows euro-area equities. A record 95,350 put options on the SPDR Euro Stoxx 50 ETF changed hands on Friday as a trader bought 45,000 March/May $33 put spreads on the security, which is mostly composed of French stocks. The investor is preparing for a rise in volatility after next month’s expiration and a potential drop by May, Susquehanna International Group analysts wrote in a note to clients, saying the trader may be positioning for a move from the French election.

France’s upcoming presidential election is expected to be highly contested, with several candidates holding a reasonable chance of winning. The candidates range from the far left to the far right of the political spectrum, so a great deal of potential change hangs in the balance for the world’s seventh largest economy.

FEZ is actually sitting right near 52-week highs, so this big bearish bet is nothing if not brazen.

The SPDR Euro Stoxx 50 ETF (NYSE:FEZ) was unchanged at $34.34 in premarket trading Monday. Year-to-date, FEZ has gained 2.63%, versus a 2.60% rise in the benchmark S&P 500 index during the same period.

FEZ currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #6 of 91 ETFs in the European Equities ETFs category.

You are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)

Powered by WPeMatico