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

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.

EEM

Midday index, ETF option volumes

September 26, 2014

Total option volume is above average at more than 6 million contracts so far today, with the big indexes and ETFs making up most of the action, optionMONSTER data systems show.

EEM

Midday index, ETF option volumes

September 22, 2014

Total option volume is running strong to start the week, already closing in on 7 million contracts near midday trading, with bearish action in the primary indexes and ETFs.

EEM

Midday index, ETF option volumes

September 19, 2014

Total option volume is again well above average at 6.7 million so far today, with mixed sentiment showing in the primary indexes ETFs, according to optionMONSTER's data systems.

EEM

Huge trade sees EEM holding firm

September 19, 2014

An enormous put sale is looking for shares of the iShares Emerging Markets Fund to hold firm through the end of next month.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Free Webinars

How Can Equity Traders Beat the Algos

Education & Strategy

When to go in or out of the money

Some of our subscribers recently asked how to gauge positions that are in or out of the money, so I...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER