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Current DateTime: 04:20:38 23 Nov 2009
LinksList Documentid: 30328029
Options Go Bearish on Emerging Market Stock
Published: Wednesday, 6 May 2009 | 3:01 PM ET
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By: David Russell
writer, OptionMonster

Emerging markets have significantly outperformed U.S. stocks over the past month, and some options traders are positioning for a pullback.

In a single transaction, a large investor purchased 20,000 September 30 puts in the MSCI Emerging Markets [EEM  Loading...      ()   ] exchange traded fund for $2.79, according to OptionMonster's monitoring system. The trade dwarfed the strike's existing open interest of 754 contracts.

The ETF has rallied almost 15 percent in the past month, compared with a 9 percent gain for the S&P 500. Investors may be looking to hedge recent profits or bet on a pullback after the index leapt Monday above $30, its highest price since early October. EEM is up 1.3 percent to $31.22 in midday Wednesday trading.

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Options Education:

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Major Nation ETFs:

iShares FTSE/Xinhua China 25 Index [FXI  Loading...      ()   ]

iShares MSCI Brazil Index [EWZ  Loading...      ()   ]

iShares MSCI Japan Index [EWJ  Loading...      ()   ]

iShares MSCI Taiwan Index [EWT  Loading...      ()   ]

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David Russell is a reporter and writer for OptionMonster.

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