Learn the trade here. Make it on tradeMONSTER

Options Trading News

July 9, 2013  Tue 2:45 AM CT

EEM: SEE CHART GET CHAIN FIND STRATEGIES
A huge trade is counting on limited upside in the iShares Emerging Markets Fund.

optionMONSTER systems show that a trader bought 57,000 August 40.50 calls for the ask price of $0.19 and sold the same number of August 39 calls for $0.52 yesterday. The volume was more than twice the previous open interest at each strike, indicating that this is new positioning.

This strategy is known as a credit spread and takes in $0.33, which the trader will keep as profit if the EEM remains below $39 at expiration in mid-August. The maximum potential loss is $1.17 if it is above $40.50 at that time. (See our Education section)

The EEM was up fractionally yesterday to close at $37.39. The exchange-traded fund was above $44 in early May but fell to $36.16 two weeks ago, its lowest intraday price since November 2011.
Share this article with your friends


Related Stories

EEM

Midday index, ETF option volumes

October 29, 2014

Total option volume is a bit above average at 6 million so far, with mixed action in the major indexes and ETFs, according to optionMONSTER data systems.

EEM

Midday index, ETF option volumes

October 28, 2014

Total option volume has picked back up at 5.8 million so far today, with relatively bullish sentiment in the big indexes and ETFs, according to optionMONSTER data systems.

EEM

Midday index, ETF option volumes

October 17, 2014

Total option volume has come down but is still running strong at 7.7 million so far today, with the big indexes and ETFs leading the way, optionMONSTER data systems show.

EEM

Midday index, ETF option volumes

October 16, 2014

Total option volume remains robust at 8.6 million contracts so far today, topped by the major indexes and ETFs, according to optionMONSTER data systems.

EEM

Midday index, ETF option volumes

October 15, 2014

Total option volume is again very strong, closing in on 10 million contracts already today, dominated by the major indexes and ETFs, according to optionMONSTER data systems.

Premium Services

Free Webinar Series

The 100K Challenge

Education & Strategy

Anatomy of a butterfly

One of the many esoterically named option strategies is known as a "butterfly." But don't be fooled: Like other advanced...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER