Mike Khouw's iShares MSCI Emerging Markets Index ETF Trade

, Mike Khouw suggested an options strategy in iShares MSCI Emerging Markets Index (

)

. He explained that this ETF has already had significant run, and he doesn't want to chase it. Instead, Mr. Khouw recommended an options strategy which is, in his opinion, better than buying the stock. Mike Khouw would sell the April 40 put option for $0.70, and he would buy the April 47 call option for $0.70. He would not have to lay out any money for this trade, and he is going participate on the upside if the stock moves 7% up. If the stock moves 9% down, he would have to get long position in EEM. iShares MSCI Emerging Markets Index (

) (

) fell 0.05% today, and it closed at $43.89.