Big trade backs emerging markets

optionMONSTER

 A large trade is betting that the iShares Emerging Markets Fund will hold recent gains.

optionMONSTER systems show that a block of 7,250 December 42.50 puts was sold for the bid price of $1.10. The previous open interest had been 4,818 in the strike, so this is clearly a new position.
 
The put seller is looking for the EEM to hold above $42.50 through expiration in mid-December. The trader is also taking on the risk of having to buy 725,000 shares if the stock falls below that strike price. (See our Education section)

The EEM was down fractionally yesterday at $43.24. The exchange-traded fund had been trending higher since the beginning of the month, and Friday saw its highest prices since May. Shares were below $41 at the end of September. 


More From optionMONSTER

View Comments (0)