The iShares Emerging Market ETF (EEM) Has Been One Of The Most Widely Traded Options Series

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April 6, 2010 2:40pm NYSE:EEM

“The iShares Emerging Market Index exchange-traded fund was very popular yesterday, with more than 63 million shares and 445,000 options contracts changing hands. The (NYSE: EEM) EEM hit


 a new 19-month high, finishing the day at $43.61. That added to Thursday’s substantial gains and the rally from down near $36 a month ago,” Option Monster Reports.

They go on to say, “The ETF has been one of the most widely traded options series of late, but yesterday saw twice its average daily volume. A big chunk of this was one trade that involved 90,000 each of the April and May 40 puts. A trader sold 90,000 of the April 40 puts for $0.08 against open interest of 252,774 contracts. At the same time this investor bought the same number of May 40 puts for $0.43 at volume more than five times open interest at that strike.”

“This appears to be a roll as opposed to a straight calendar, with the trader closing the April position and opening May to continue the bearish position–or hedge–and position for better returns if the (EEM) does retreat from these levels,” Option Monster Reports.

Here are some details on the iShares Emerging Market ETF (EEM) including a snapshot of the options activity below:

The iShares MSCI Emerging Markets Index Fund (EEM) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in emerging markets, as represented by the MSCI Emerging Markets Index.

Top Monthly Holdings*
as of 2/26/2010
 
SAMSUNG ELECTR-GDR REGS 144A 3.21%
TAIWAN SEMICONDUCTOR-SP ADR 2.44%
PETROLEO BRASILEIRO S.A.-ADR 2.42%
BANCO ITAU HOLDING FINANCEIRA SA – ADR 2.23%
PETROLEO BRASILEIRO S.A.-ADR 2.02%
POSCO-ADR 1.94%
CHINA MOBILE LTD 1.86%
VALE SA ADR 1.75%
OAO GAZPROM-REG S ADS 1.60%
BANCO BRADESCO-SPONSORED ADR 1.58%
Total 21.04%
*Holdings are subject to change.

 

Chart for iShares MSCI Emerging Markets Index (EEM)

PUT OPTIONS Expire at close Fri, Apr 16, 2010
 
Strike Symbol Last Chg Bid Ask Vol Open Int
27.00 EEM100417P00027000 0.03 0.00 N/A 0.02 0 38
28.00 EEM100417P00028000 0.08 0.00 N/A 0.02 0 152
29.00 EEM100417P00029000 0.08 0.00 N/A 0.02 0 18
30.00 EEM100417P00030000 0.03 0.00 N/A 0.01 0 410
31.00 EEM100417P00031000 0.02 0.00 N/A 0.01 0 471
32.00 EEM100417P00032000 0.03 0.00 N/A 0.01 0 8,276
33.00 EEM100417P00033000 0.01 0.00 N/A 0.01 46 58,119
34.00 EEM100417P00034000 0.01 0.00 N/A 0.01 24 28,567
35.00 EEM100417P00035000 0.02 0.00 0.01 0.02 1 21,893
36.00 EEM100417P00036000 0.03 Up 0.01 0.01 0.02 29 39,348
37.00 EEM100417P00037000 0.01 Down 0.01 0.02 0.03 15 61,125
38.00 EEM100417P00038000 0.03 Down 0.01 0.03 0.04 222 92,441
39.00 EEM100417P00039000 0.05 0.00 0.04 0.05 151 69,980
40.00 EEM100417P00040000 0.06 Down 0.02 0.06 0.07 1,587 172,855
41.00 EEM100417P00041000 0.09 Down 0.03 0.08 0.10 314 128,784
42.00 EEM100417P00042000 0.18 Down 0.02 0.15 0.16 3,916 21,275
43.00 EEM100417P00043000 0.31 Down 0.09 0.31 0.32 4,379 8,558
44.00 EEM100417P00044000 0.68 Down 0.17 0.68 0.70 1,586 8,674
45.00 EEM100417P00045000 1.35 Down 0.19 1.35 1.37 47 1,732
46.00 EEM100417P00046000 2.38 Down 0.72 2.21 2.26 34 1,285
47.00 EEM100417P00047000 3.35 Down 0.05 3.15 3.25 11 829
PUT OPTIONS Expire at close Fri, May 21, 2010
 
Strike Symbol Last Chg Bid Ask Vol Open Int
32.00 EEM100522P00032000 0.08 0.00 0.04 0.06 0 124
33.00 EEM100522P00033000 0.06 Down 0.07 0.05 0.07 30 203
34.00 EEM100522P00034000 0.08 Down 0.06 0.07 0.09 20 64
35.00 EEM100522P00035000 0.10 0.00 0.09 0.11 20 2,564
36.00 EEM100522P00036000 0.12 0.00 0.12 0.13 1 12,899
37.00 EEM100522P00037000 0.16 Down 0.01 0.15 0.17 10,009 6,217
38.00 EEM100522P00038000 0.22 0.00 0.21 0.22 2,716 10,528
39.00 EEM100522P00039000 0.29 Down 0.03 0.29 0.30 1,305 7,212
40.00 EEM100522P00040000 0.40 Down 0.03 0.39 0.41 1,312 107,969
41.00 EEM100522P00041000 0.56 Down 0.04 0.56 0.57 11,596 11,651
42.00 EEM100522P00042000 0.79 Down 0.06 0.79 0.81 6,270 35,238
43.00 EEM100522P00043000 1.12 Down 0.08 1.10 1.12 1,309 5,105
44.00 EEM100522P00044000 1.54 Down 0.06 1.52 1.54 440 814
45.00 EEM100522P00045000 2.15 Down 0.02 2.05 2.07 600 119
46.00 EEM100522P00046000 2.73 Down 0.13 2.69 2.73 132 125
47.00 EEM100522P00047000 3.50 Down 0.65 3.40 3.50 1 134
48.00 EEM100522P00048000 4.50 Down 1.70 4.30 4.35 450 152

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