As opposed to liquid futures markets, there are thousands of individual equity options contracts to trade, be they individual equities, indexes or exchanged trade funds (ETFs). Because of this, it is important to watch activity levels to spot opportunities.
EWZ has been trading in a defined range since October (red lines). The maximum pay-off occurs if EWZ tests the long held support level (lower red line) around expiration. Notice how the profitable range (green shaded area) encompasses most of the range as well as a breakout to the downside.
