cmeg has company, you guys need to let him trade his trade. None of us know which way this is going-
Posted on 06/14/10 at 11:10am by Michael J. Zerinskas Shares of the ISHARES MSCI EMERGING MARKETS INDEX FUND (NYSE: EEM) are higher on the session by 1.11%, currently trading at $39.19. The ETF recently made a new low on its recent retracement and is now butting its head against the 50-day and 200-day moving averages.
Technical theory would suggest outlaying shorts on the EEM near these levels.
One options trader is betting on further downside for the ETF by rolling a long put position from June to July. The June $38 put was sold on the bid 119,800 times for $0.26 and the July $37 put was purchased near the offer 119,800 times for $0.95.
This suggests that a very large, institutional investor is still very worried about a further drop in worldwide markets.
The ISHARES MSCI EMERGING MARKETS INDEX FUND seeks investment results that correspond generally to the price and yield performance of the MSCI Emerging Markets index. The fund generally invests at least 90% of assets in the securities of the underlying index or in ADRs and GDRs representing such securities. The index was developed by MSCI as an equity benchmark for international stock performance. It is nondiversified.