Learn the trade here. Make it on tradeMONSTER

Options Trading News

June 11, 2013  Tue 5:16 AM CT

EEM: SEE CHART GET CHAIN FIND STRATEGIES
Traders remain bearish toward emerging markets in a big way.

optionMONSTER's Depth Charge scanners detected a large put roll last week in the iShares Emerging Markets Index Fund as a downside position was rolled from June to July. The bears came back right out of the gate yesterday, targeting the September 38 puts for $1.20.

The volume exceeded 56,000 contracts, more than 4 times the strike's previous open interest, which shows that new positions being established. Later in the morning, traders also snapped up the September 35 putsfor $0.56 in huge size.

Puts lock in the price where a stock can be sold, which gives them an inverse relationship to the share price. Investors often use them to hedge long positions but also to speculate to the downside, so that kind of activity is definitely bearish. (See our Education section)

The EEM fell 1.35 percent to $40.14 yesterday and is down almost 10 percent since the start of the year. More than 438,000 options traded in the fund in twice its daily average, and the skew was heavily bearish with fewer than 90,000 calls trading.

Disclosure: I own EEM puts.

(A version of this post appeared on InsideOptions Pro yesterday.)
Share this article with your friends


Related Stories

EEM

Midday index, ETF option volumes

October 17, 2014

Total option volume has come down but is still running strong at 7.7 million so far today, with the big indexes and ETFs leading the way, optionMONSTER data systems show.

EEM

Midday index, ETF option volumes

October 16, 2014

Total option volume remains robust at 8.6 million contracts so far today, topped by the major indexes and ETFs, according to optionMONSTER data systems.

EEM

Midday index, ETF option volumes

October 15, 2014

Total option volume is again very strong, closing in on 10 million contracts already today, dominated by the major indexes and ETFs, according to optionMONSTER data systems.

EEM

Midday index, ETF option volumes

October 2, 2014

Total option volume is running above average at 6 million contracts so far today, and optionMONSTER data systems show that the sentiment is surprisingly not very bearish.

EEM

Midday index, ETF option volumes

September 30, 2014

Total option volume is back to average at 5.3 million so far today, with relatively bearish sentiment still showing in the primary indexes and ETFs, according to optionMONSTER data systems.

Premium Services

Free Webinars

Make Money in a Volatile Market

Education & Strategy

Vexed by the VIX

Many people probably don't know that the calculation changed for the CBOE Volatility Index this week, but it's worth discussing...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER