OptionsHouse

Options Trading News

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.
Share this article with your friends


OptionsHouse

Premium Services

Archived Webinar

Education & Strategy

Long synthetic call

Long and short Synthetic stock are two of the six basic synthetic positions that exist. Number three on our list is the Synthetic Long Call...

View more education articles »