Show of support in emerging markets
One trader apparently believes that the Vanguard FTSE Emerging Markets Fund will hold its ground in 2015.
optionMONSTER's tracking systems detected the sale of 2,718 December 37 puts in one print for $2.15 yesterday. Open interest in the strike was a mere 20 contracts before the trade took place, showing that it is a new position.
The put seller collects the $2.15 option premium and is looking for the VWO to stay above $37 through expiration near the end of the year. If the stock falls below that strike price, the trader will be on the hook to buy shares at that level. (See our Education section)
The VWO slipped 0.35 percent to $40.25 yesterday. The exchange-traded fund has fallen more than 13 percent since reaching a 52-week high of $46.49 in early September but is well off its lows below $38 from December.
Yesterday's total option volume in the ETF was more than double its daily average for the last month.
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