From the good folks at Trade Alert, LLC (www.trade-alert.com) who track daily activity across the options market. They are the best trade service that I subscribe to: As follows…..
EEM – Call buyers go on a $26M spending spree in Emerging Markets ETF. Over the past five trading days, 2.6M EEM calls have traded, vs 600K puts, with buyers driving the action, opening massive positions in several upside strikes with expirations ranging from ten days to seven months out. Flow picked up last Wednesay with a buyer paying 12c to open nearly 100K Nov 44 calls as the ETF traded $42.90, $1 below current levels. Halloween saw a buyer of nearly 100K Nov 43.5 calls 15c, also opening. Buyer sized-up on Nov 1 with 200K Nov 44 calls for 17.6c, a $3.5M premium outlay, and then partially unwound the November positions on Monday for gains near 100% to buy 250K Dec 45c for a vwap of 38.6c. Size continued on Tuesday with 286K June 50 calls bought for 36c, a $10M premium position, struck nearly 14% above spot and expiring in 7.5 months. Together, the Dec and June blocks represent nearly $2B in notional exposure for the ETF, which counts Alibaba, Taiwan Semi, Tencent and Samsung among top holdings. EEM is up about 13% YTD but well below the $51 all-time highs seen in Jan 2018.