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Dan Nathan Sees Unusual Options Activity In This Emerging Markets ETF


On CNBC's Options Action, Dan Nathan spoke about unusually high bullish options activity in iShares MSCI Emerging Markets Indx (ETF) (NYSE: EEM). The call options volume in the ETF was 1.25 times higher than the put options volume and the most active were the September expiration calls.

When the stock was trading around $37, a trader sold to close 55.000 contracts of the September 39 calls and bought to open 55.000 contracts of the September 38 calls for $0.28. The trade breaks even at $38.28 or 3.18 percent higher from the current stock price.

Nathan explained that the trader wanted to roll the out of the money position into a position that has a higher probability of expiring in the money.


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