Learn the trade here. Make it on tradeMONSTER

Options Trading News

February 26, 2013  Tue 9:13 AM CT

A large put spread tops today's option activity in the iShares Emerging Markets Fund this morning.

optionMONSTER systems show that a trader bought 25,200 April 41 puts for the ask price of $0.49 in volume that was twice the open interest before today's trading began, indicating new activity. Seconds later, he or she sold 24,824 April 42 puts for the bid price of $1.08 against open interest of 105,000 at that strike.

This could be a credit spread that is looking for the EEM to remain above $43, but it is more likely a roll lower, with the trader getting out of the at-the-money puts to take money off the table while protecting a long stock position. (See our Education section)

The EEM is up 0.47 percent to $42.91. The exchange-traded fund had fallen from above $45 at the start of 2013 to yesterday's close of $42.70, its lowest since early December.

More than 79,000 total EEM options have traded so far today.
Share this article with your friends


TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Free Webinar Series

Using Options for Income

Education & Strategy

Importance of learning the basics

Personally, I could never understand how so many option instructors start teaching strategies before explaining what an option is. I...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER