Emerging Market ETF update - InvestingChannel

Emerging Market ETF update

iShares MSCI Emerging Markets (EEM, quote) ETF which seeks to track the MSCI Emerging Markets Index is seeing some unusual option activity in the October expiration this afternoon.

Emerging-marketsA 7,500 buy/write on the October 45 calls and October 45 puts occurred at 13:47:15 with the call triggering on the ask and put triggering just one penny shy of the ask on 9 cent spread.

On the call side its seems to be a bet on price not recovering above $45 per share until after October 18th but the put side is a little more riskier since the strike in currently in the money.  The put buy/write was traded at $2.88 giving the trader downside protection to $42.12 some $0.22 in profits as of this moment. 

Whether this is the same traders on both the call and put side or separate traders its looks like a large bet or bets have been place that the EEM price will hover around current prices.

 

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