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December 10, 2012  Mon 2:14 AM CT

EEM: SEE CHART GET CHAIN FIND STRATEGIES
The iShares Emerging Markets Fund attracted a large call trade on Friday as the ETF saw its highest close since early April.

optionMONSTER systems show that 15,000 December 43 calls were sold for the bid price of $0.33 against open interest of more than 94,000. Seconds later, 15,000 March 43 calls were bought for the ask of $1.53 in volume that was above the open interest at that strike.

The trader could be setting up a long calendar spread, which would be designed to profit if the EEM is right around $43 at the December expiration. This could also be a roll with just two weeks left before the December expiration, selling the long calls in that expiration and opening a long-term position for more time to profit. (See our Education section)

The EEM closed at $42.79 on Friday, up 0.3 percent on the day. The exchange-traded fund bounced off support at $40 three weeks ago.
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Options Academy: Ron's Risk Calculation--A Real Life Example

It is rare that I get a chance to give a real-life, real-time example in my articles that the readers were not only following but were actually involved in at the time the event is happening. Well, that is where we are right now in our QQQ trade from last week. Let's recap the trade itself.

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