OptionsHouse

Options Trading News

February 5, 2013  Tue 2:45 AM CT

EEM: SEE CHART GET CHAIN FIND STRATEGIES
A large trader is apparently expecting a sharp move in iShares Emerging Markets Fund.

optionMONSTER's Depth Charge system shows that a trader bought 8,500 September 36 puts for $0.65 yesterday. This clearly a new purchase, as the volume was more than 9 times higher than the strike's open interest of 908 contracts before the session began.  

A minute later 119,000 shares of EEM were bought for $44.05. Combined with the puts, this creates a so-called delta-neutral strategy that is betting on higher volatility. This means that the trader is looking for a big move either up or down in the exchange-traded fund. (See our Education section)

The EEM fell 1.31 percent to $43.92 yesterday, its second-lowest close so far this year. It hit a 52-week high of $45.33 on the first day of 2013 but has been slowly losing ground since.
Share this article with your friends


Invest Like a Monster - Las Vegas: March 13-14

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Webinar Recording

Turbo Charge Your Trading Profits

Education & Strategy

Gamma

As we continue to discuss the Greeks, we come to the first of the strike based Greeks called Gamma. Gamma is known as the second derivative, while delta is the first.

View more education articles »