A large trader is betting that emerging markets are heading higher.
The same player apparently has been buying the iShares MSCI EAFE Index Fund and the iShares MSCI Emerging Markets Index Fund. This trader has been right so far and yesterday came back to the EEM.
OptionMonster’s tracking systems detected the purchase of 40,000 September 42 calls (explain this), the sale of 80,000 September 43.50 calls, and the sale of 40,000 September 45 calls. That trade, known as a butterfly spread, will leverage a move between $42 and $43.50.