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October 23, 2012  Tue 2:14 AM CT

EEM: SEE CHART GET CHAIN FIND STRATEGIES
The iShares Emerging Markets Fund rose yesterday, but a long-term strategy is bearish.

The EEM closed at $41.90, up 0.96 percent but not quite matching its morning highs. Shares of the exchange-traded fund are in the middle of their range of the last five weeks.

A trader bought 10,000 September 2013 28.50 puts for $2.88 and sold 10,000 September 2013 45.50 calls for the bid price $1.96, according to optionMONSTER's systems. Open interest at the two strikes was 53 and 1 respectively, so this is a new combination trade.

The bearish position cost $0.92 to open, which would be lost if the EEM remains between the two strikes, with further risk above $45.50. This could also be a collar on long shares, protecting against a possible move lower. (See our Education section)

The option volume topped 217,000 contracts, essentially split between calls and puts. That compares to the daily average of 111,000.
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