Some players in the options market strangled the iShares Emerging Markets Fund (EEM) for a second time this week. On Monday, we saw interest in the EEM March 40/35 strangle. Today, attention turned to the December contracts. At 12:25 Eastern time, an order of 2,500 December 42 calls traded offerside for $3.20 a contract on the PHLX. The same number of 38 puts traded offerside for $1.65 a contract at the same time.

With open interest of 562 and 8 in these two contracts, respectively, the action seems to be opening trades. In addition, with the fund trading up 83 cents to $42.52, this strangle is a play on possible volatility in the fund, but also with a bullish bias. That is, it will make money faster if the ETF moves higher rather than lower. The EEM is a fund that holds a basket of companies from various emerging markets including China, Brazil, and Taiwan. Nearly 40 percent of the constituents are either energy or basic material companies. 17.5 percent are financials.