iShares Emerging Markets Fund (EEM) has added 65 cents to $41.06 and one investor sells the Jan 35 – 40 put spread on the ETF at 81 cents, 23,700X, to buy the same number of Jan14 30 – 35 put spreads for $1.13, paying a net 32 cents and probably rolling a position out twelve months. Some of the Jan 35 – 40 put spreads were possibly opened on 3/15 when the spread was apparently being bought-to-open for $1.36, 17,900X. Shares are down about $3, or 7 percent, since that time, but the drop hasn’t been large enough to offset the impact of time decay. Additionally, implied volatility in EEM options, as measured by VXEEM, is down 10.9 percent to 21.06 today and below the levels seen in mid-March when it was in the mid-20s.
Category: All ETFs
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.