“The iShares MSCI Emerging Markets Index (NYSE:EEM) is down 0.3 percent to $39.82. Yesterday shares posted their highest close in a month after rebounding from $35.21 on May 25, a nine-month low. The stock had been trading at $44 just two months ago.  With June expiration approaching on Friday, one trader has apparently decided to roll out a large put position. Almost 200,000 contracts trade in one set of transactions. The trade involves the sale of 95,000 of the June 36 puts, with big blocks going for $0.03, against open interest of 179,346 contracts,” Chris McKhann Reports From Options Monster.

McKhann goes on to say, “In corresponding trades, 95,000 of the July 36 puts were purchased for $0.59. This was almost five times the previous open interest at that strike.  The position clearly represents a trader rolling the puts out a month and is likely a hedge against long shares, given that the strike is out of the money and sitting right at support. But it does tell us some other interesting things.”

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“It means that this investor is holding a large proportion of (NYSE:EEM) options, despite the big volumes we have seen in this ETF. Those June 36 puts had the second largest open interest of any EEM strike.  And with this trade, the July 36s will now have the second largest open interest of any of the July strikes. These trail only behind the June 38 and July 37 put strikes, and there is no saying that it isn’t this same investor who is in those as well,” McKhann Reports.

Here are some more details we put together on the  iShares MSCI Emerging Markets Index ETF (NYSE:EEM) including a snapshot of the options activity mentioned.

iShares MSCI Emerging Market Index fund (NYSE:EEM)

The investment seeks investment results that correspond generally to the price and yield performance of the MSCI Emerging Markets index. The fund generally invests at least 90% of assets in the securities of the underlying index or in ADRs and GDRs representing such securities. The index was developed by MSCI as an equity benchmark for international stock performance. It is nondiversified.

TOP 10 HOLDINGS ( 18.49% OF TOTAL ASSETS)

Company Symbol % Assets   (SMSN) 2.93 Taiwan Semiconductor Manufactur (TSM) 2.01 POSCO Common Stock (PKX) 1.93   (00941) 1.84   (OGZPY) 1.83 Chunghwa Telecom Co Ltd America (CHT) 1.64   (RIODF) 1.61 Itau Unibanco Banco Holding SA (ITUB) 1.60 Petroleo Brasileiro S.A.- Petro (PBR) 1.55   (OGZPY) 1.55

 

Call Options

Expire at close Friday, June 18, 2010

Strike Symbol Last Chg Bid Ask Vol Open Int 20.00 EEM100619C00020000 21.77 0.00 19.85 20.05 0 4 21.00 EEM100619C00021000 17.35 0.00 18.85 19.05 0 2 22.00 EEM100619C00022000 14.45 0.00 17.85 18.05 0 37 23.00 EEM100619C00023000 13.90 0.00 16.85 17.05 0 24 24.00 EEM100619C00024000 14.15 0.00 15.85 16.05 0 20 25.00 EEM100619C00025000 13.04 0.00 14.85 15.05 0 50 26.00 EEM100619C00026000 11.17 0.00 13.85 14.05 0 86 27.00 EEM100619C00027000 12.30 0.00 12.85 13.00 2 49 28.00 EEM100619C00028000 9.20 0.00 11.85 12.05 0 53 29.00 EEM100619C00029000 9.35 0.00 10.85 11.05 0 272 30.00 EEM100619C00030000 9.44 0.00 9.85 10.00 16 587 31.00 EEM100619C00031000 8.73 0.00 8.85 9.00 5 151 32.00 EEM100619C00032000 7.25 0.00 7.80 8.05 1 1,134 33.00 EEM100619C00033000 7.00 1.55 6.85 7.00 2 691 34.00 EEM100619C00034000 6.00 0.40 5.80 6.00 3 528 35.00 EEM100619C00035000 4.85 0.10 4.80 5.00 5 13,859 36.00 EEM100619C00036000 3.95 0.05 3.85 4.00 4 6,489 37.00 EEM100619C00037000 3.05 0.04 2.90 3.05 95 19,769 38.00 EEM100619C00038000 1.92 0.07 1.92 2.02 255 111,800 39.00 EEM100619C00039000 1.06 0.07 1.03 1.12 11,015 46,745 40.00 EEM100619C00040000 0.39 0.07 0.36 0.42 11,275 147,600 41.00 EEM100619C00041000 0.09 0.02 0.09 0.10 52,954 101,701 42.00 EEM100619C00042000 0.02 0.00 N/A 0.04 5,962 59,067 43.00 EEM100619C00043000 0.01 0.00 N/A 0.01 21 60,317 44.00 EEM100619C00044000 0.01 0.00 N/A 0.01 2 60,102 45.00 EEM100619C00045000 0.01 0.00 N/A 0.04 45 44,354 46.00 EEM100619C00046000 0.01 0.00 N/A 0.02 6 28,621 47.00 EEM100619C00047000 0.01 0.00 N/A 0.01 0 20,258 48.00 EEM100619C00048000 0.01 0.00 N/A 0.02 0 9,976 49.00 EEM100619C00049000 0.01 0.00 N/A 0.02 0 118,683 50.00 EEM100619C00050000 0.01 0.00 N/A 0.01 0 1,383 51.00 EEM100619C00051000 0.03 0.00 N/A 0.02 0 982 52.00 EEM100619C00052000 0.01 0.00 N/A 0.02 0 391 53.00 EEM100619C00053000 1.65 0.00 N/A 0.02 0 682 54.00 EEM100619C00054000 0.06 0.00 N/A 0.02 0 402 55.00 EEM100619C00055000 0.04 0.00 N/A 0.02 0 633 56.00 EEM100619C00056000 0.02 0.00 N/A 0.01 0 849 57.00 EEM100619C00057000 0.23 0.00 N/A 0.01 0 862 58.00 EEM100619C00058000 0.16 0.00 N/A 0.01 0 280 59.00 EEM100619C00059000 0.05 0.00 N/A 0.01 0 10

Put Options

Expire at close Friday, June 18, 2010

Strike Symbol Last Chg Bid Ask Vol Open Int 20.00 EEM100619P00020000 0.05 0.00 N/A 0.01 0 765 21.00 EEM100619P00021000 0.04 0.00 N/A 0.01 0 1,871 22.00 EEM100619P00022000 0.01 0.00 N/A 0.01 0 1,063 23.00 EEM100619P00023000 0.01 0.00 N/A 0.01 0 2,213 24.00 EEM100619P00024000 0.01 0.00 N/A 0.01 0 1,401 25.00 EEM100619P00025000 0.01 0.00 N/A 0.01 0 39,967 26.00 EEM100619P00026000 0.02 0.00 N/A 0.01 0 4,979 27.00 EEM100619P00027000 0.02 0.00 N/A 0.01 0 1,516 28.00 EEM100619P00028000 0.02 0.00 N/A 0.01 0 35,211 29.00 EEM100619P00029000 0.01 0.02 N/A 0.01 272 33,746 30.00 EEM100619P00030000 0.01 0.00 N/A 0.01 20 138,529 31.00 EEM100619P00031000 0.03 0.00 N/A 0.02 5 34,187 32.00 EEM100619P00032000 0.01 0.00 N/A 0.03 14 33,358 33.00 EEM100619P00033000 0.01 0.00 N/A 0.03 14 61,951 34.00 EEM100619P00034000 0.03 0.02 N/A 0.02 24 40,402 35.00 EEM100619P00035000 0.01 0.01 N/A 0.02 235 166,541 36.00 EEM100619P00036000 0.02 0.01 N/A 0.02 95,064 179,346 37.00 EEM100619P00037000 0.03 0.01 0.02 0.05 372 108,259 38.00 EEM100619P00038000 0.06 0.01 0.05 0.06 1,180 235,240 39.00 EEM100619P00039000 0.14 0.05 0.12 0.17 9,236 99,052 40.00 EEM100619P00040000 0.46 0.08 0.43 0.49 5,609 148,284 41.00 EEM100619P00041000 1.21 0.04 1.12 1.19 131 126,497 42.00 EEM100619P00042000 2.15 0.10 2.04 2.15 154 70,385 43.00 EEM100619P00043000 3.20 0.15 3.00 3.15 178 32,427 44.00 EEM100619P00044000 3.98 0.82 4.00 4.20 1 20,499 45.00 EEM100619P00045000 5.70 0.20 5.00 5.20 2 3,975 46.00 EEM100619P00046000 8.30 0.00 6.00 6.15 0 2,558 47.00 EEM100619P00047000 11.30 0.00 7.00 7.20 0 2,597 48.00 EEM100619P00048000 9.40 0.00 8.00 8.20 0 956 49.00 EEM100619P00049000 6.00 0.00 9.00 9.20 0 1,012 50.00 EEM100619P00050000 12.83 0.00 10.00 10.15 0 663 51.00 EEM100619P00051000 11.20 1.40 11.00 11.15 15 125 52.00 EEM100619P00052000 15.30 0.00 11.95 12.20 0 301 55.00 EEM100619P00055000 16.70 0.00 14.95 15.20 0 98 56.00 EEM100619P00056000 17.70 0.00 15.95 16.20 0 8 58.00 EEM100619P00058000 18.55 0.00 18.00 18.20 0 17 60.00 EEM100619P00060000 20.60 0.00 20.00 20.20 0 8

Call Options

Expire at close Friday, July 16, 2010

Strike Symbol Last Chg Bid Ask Vol Open Int 23.00 EEM100717C00023000 13.75 0.00 16.75 17.05 0 32 25.00 EEM100717C00025000 13.35 0.00 14.80 15.05 0 11 26.00 EEM100717C00026000 11.40 0.00 13.75 14.05 0 5 27.00 EEM100717C00027000 11.25 0.00 12.75 13.05 0 2 29.00 EEM100717C00029000 8.80 0.00 10.80 11.05 0 15 30.00 EEM100717C00030000 9.20 0.00 9.80 10.05 15 15 31.00 EEM100717C00031000 5.60 0.00 8.80 9.05 0 17 32.00 EEM100717C00032000 7.30 0.00 7.85 8.05 0 55 33.00 EEM100717C00033000 5.85 0.00 6.85 7.05 0 776 34.00 EEM100717C00034000 5.90 0.30 5.95 6.05 39 212 35.00 EEM100717C00035000 5.05 0.25 5.00 5.10 96 821 36.00 EEM100717C00036000 4.10 0.05 4.10 4.20 82 1,878 37.00 EEM100717C00037000 3.20 0.06 3.25 3.35 21 4,759 38.00 EEM100717C00038000 2.43 0.03 2.46 2.53 4,215 16,829 39.00 EEM100717C00039000 1.82 0.04 1.77 1.83 291 6,649 40.00 EEM100717C00040000 1.20 0.06 1.18 1.24 9,122 15,159 41.00 EEM100717C00041000 0.75 0.02 0.72 0.78 1,087 13,015 42.00 EEM100717C00042000 0.42 0.03 0.40 0.45 575 9,389 43.00 EEM100717C00043000 0.20 0.04 0.20 0.22 112 3,119 44.00 EEM100717C00044000 0.11 0.01 0.08 0.11 1,208 9,327 45.00 EEM100717C00045000 0.04 0.01 0.03 0.06 67 441 47.00 EEM100717C00047000 0.04 0.00 N/A 0.03 0 10 49.00 EEM100717C00049000 0.01 0.00 N/A 0.01 0 55

Put Options

Expire at close Friday, July 16, 2010

Strike Symbol Last Chg Bid Ask Vol Open Int 19.00 EEM100717P00019000 0.04 0.00 N/A 0.03 0 292 20.00 EEM100717P00020000 0.06 0.00 N/A 0.02 0 108 23.00 EEM100717P00023000 0.12 0.00 0.02 0.04 0 90 24.00 EEM100717P00024000 0.04 0.00 0.03 0.06 32 20,072 25.00 EEM100717P00025000 0.04 0.00 0.03 0.06 123 610 26.00 EEM100717P00026000 0.10 0.00 0.04 0.08 0 320 27.00 EEM100717P00027000 0.21 0.00 0.06 0.09 0 328 28.00 EEM100717P00028000 0.08 0.00 0.07 0.11 20 416 29.00 EEM100717P00029000 0.10 0.00 0.09 0.12 26 398 30.00 EEM100717P00030000 0.12 0.00 0.11 0.13 110 4,973 31.00 EEM100717P00031000 0.15 0.00 0.14 0.16 92 638 32.00 EEM100717P00032000 0.18 0.01 0.18 0.20 205 12,453 33.00 EEM100717P00033000 0.23 0.00 0.23 0.25 3,383 3,545 34.00 EEM100717P00034000 0.30 0.01 0.29 0.32 228 7,871 35.00 EEM100717P00035000 0.40 0.02 0.38 0.41 3,942 32,544 36.00 EEM100717P00036000 0.51 0.00 0.50 0.53 98,081 18,738 37.00 EEM100717P00037000 0.68 0.02 0.66 0.71 943 146,209 38.00 EEM100717P00038000 0.93 0.00 0.89 0.94 4,652 15,338 39.00 EEM100717P00039000 1.23 0.02 1.19 1.25 933 2,712 40.00 EEM100717P00040000 1.66 0.00 1.60 1.68 8,123 2,595 41.00 EEM100717P00041000 2.23 0.07 2.14 2.23 452 491 42.00 EEM100717P00042000 2.90 0.20 2.79 2.91 16 158 43.00 EEM100717P00043000 4.00 0.20 3.60 3.75 2 184 44.00 EEM100717P00044000 4.95 0.00 4.45 4.70 50 76 45.00 EEM100717P00045000 6.05 0.00 5.35 5.65 0 1,011 46.00 EEM100717P00046000 6.80 0.00 6.35 6.60 32 42 47.00 EEM100717P00047000 8.40 0.00 7.35 7.60 0 104 48.00 EEM100717P00048000 10.55 0.00 8.35 8.50 0 64 49.00 EEM100717P00049000 12.20 0.00 9.35 9.55 0 64 50.00 EEM100717P00050000 12.45 0.00 10.35 10.50 0 112 51.00 EEM100717P00051000 13.55 0.00 11.35 11.50 0 90 52.00 EEM100717P00052000 14.60 0.00 12.35 12.50 0 112 53.00 EEM100717P00053000 15.55 0.00 13.35 13.50 0 127 54.00 EEM100717P00054000 16.55 0.00 14.35 14.55 0 144 55.00 EEM100717P00055000 17.55 0.00 15.35 15.55 0 137

NYSE:EEM