According to Dan Nathan of RiskReversal.com, that same trader had initially sold to close 55,000 September 39-calls for 8 cents each, closing out a losing position for a better opportunity to profit.
"Here's a situation where one trader had an out-of-the money call position and he's rolling it down a little bit to get near the money protection," Nathan said Monday on CNBC's "Fast Money."
But he points out that the "most important thing" with the trade is the probability the trader now has to make money.
"They have about a 30 percent chance of being in the money on September expiration," Nathan said, comparing it to the previous 10 percent chance the trader initially had of being in the money.
The EEM is currently up more than 15 percent year to date.