Dan Nathan's EEM Options Trade

Dan Nathan spoke on Friday's edition of CNBC's "Options Action" about a bearish options trade in iShares MSCI Emerging Markets Index EEM.

He thinks the emerging markets could struggle as the U.S. dollar gets stronger. He has also noticed that implied volatility in the name increases sharply as global growth worries dominate the market. In such situations, traders should own puts, explained Nathan. To make a bearish bet, he wants to buy the Oct. $40 put for $1.10. The trade breaks even at $38.90 or 4.09% from Friday's closing price.

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