Dan Nathan Sees Unusual Options Activity In iShares Emerging Markets ETF

Dan Nathan spoke on CNBC's Options Action about unusually high options activity in iShares MSCI Emerging Markets Indx (ETF) EEM.

He said that the put options volume on Wednesday was four times higher than the average options trading volume and there was a big trade in the June 36.5 puts. A trader bought 20,000 contracts for $2.78, when the stock was trading at $36.50. The trade breaks even at $33.72 or 7.62 percent lower.

Nathan explained that iShares MSCI Emerging Markets Indx (ETF) is heavily leveraged on China and it struggled on Wednesday, because Alibaba Group Holding Ltd BABA traded lower after posting earnings results.