Shares of iShares MSCI Emerging Markets (EEM) ETF are up .14 to 39.16 today.? EEM is in middle of the 52-week range.
Today paper traded 162,000 EEM Jun 32.5/37.5 puts spreads at 1.0.? ADV is 376k contracts.? The OI is 1900 and 3492 contracts.
The volume went up in four huge blocks near the open.? The paper is opening and could be a put stupid where the customer is selling both strikes since most of the volume was near the bid.? If so, this is a big bet on the EM crisis improving and the trade has helped push down IV across the board in the EEM today.
30-day implied volatility is 21%.?? 10-day implied volatility is 18%.? 30 day implied volatility is trading above the 10 Day Historical volatility.
iShares MSCI Emerging Markets ETF, formerly iShares MSCI Emerging Markets Index Fund (the Fund), seeks investment results that correspond generally to the price and yield performance of publicly traded equity securities in global emerging markets, as measured by the MSCI Emerging Markets Index (the Index).