July Call Option Activity in CYB, Trading Band Expansion Related or Shorts Covering ($CYB, $CNY, $USD/CNY)

There's been interesting activity going on in the Chinese Yuan ETFs lately. Remember the strong volume in $CNY (Market Vectors Renminibi/USD ETN) on 3/22 that brought it up about 5%? Now there appears to be option activity in the WisdomTree Yuan ETF ($CYB) (hat tip OptionMonster).   As you can see 1,956 July 25 calls traded at 0.40 with 11,433 open and 1,750 July 26 calls traded at 0.17 with 15,819 open.  The volume was way UNDER open interest so I'm thinking the volume could've been shorts covering or perhaps a spread.  Thoughts?  On the put side >=July, 2010 there are 33,000 July 25 puts open and 10,000 October 24 puts open, so it's hard to tell who's positioning/hedging which direction.  Keep an eye on the Renminbi aka Chinese Yuan going forward.  If China ever de-pegs from the Dollar it would change the whole macroeconomic game and bring volatility to CYB, CNY and CNY/USD. See charts and CNY/USD trade live below.

Also read:
"China Considering Expanding Yuan Trading Band" (ZeroHedge)
"China May Widen Yuan Trading Band in Second Quarter, UBS Says" (BusinessWeek).
 "The yuan may be allowed to move as much as 2 percent either side of a daily reference rate set by the central bank, up from 0.5 percent, said Wang Tao, an economist at Switzerland’s biggest bank." (BusinessWeek)
CYB July Options (Yahoo Finance)

$CYB WisdomTree Chinese Yuan Fund

Watch CNY/USD trade live below.

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