Choices bulls have been focusing on EEM because the ETF hovers close to multi-year highs
Trade-traded funds (ETFs) reputation continues to ascend. In the beginning of 2024, ETFs had $11.1 trillion in property underneath administration (AUM), and a cumulative annualized progress fee (CAGR) of 19.8% since 2008. And to begin the yr:
“Traders pumped $65.6 billion into energetic ETFs within the three months to the top of March — greater than 50% increased than the earlier report of $41 billion within the fourth quarter of 2023.”
-The Monetary Instances, April 11, 2024
Amidst this reputation, we need to begin highlighting ETFs which can be experiencing uncommon choices exercise all through the week. First up is iShares MSCI Rising Markets ETF (EEM), which presents publicity to large- and mid-sized firms in China, South Korea, and Taiwan.Â
EEM is up 7.7% in 2024 and 10.6% within the final 12 months. Final seen at $43.33, the ETF is a chip shot from its July 12 two-year excessive of $44.64. EEM’s 200-day shifting common — which has solely been breached as soon as on a closing foundation since early February — contained pullbacks in April and August.
Yesterday, 124,000 calls modified fingers, quantity that is double the typical intraday quantity and practically quadruple the variety of places traded. It appears a 55,050 block of January 2025 44-strike calls and June 2025 45-strike calls had been the majority of this exercise, with new positions being purchased to open on the latter. Right this moment, the September 45 name is the preferred.
EEM name shopping for has been the dominant development. For instance, greater than 5 instances as many calls have been bought for each put in the course of the previous two weeks on the Worldwide Securities Trade (ISE), Chicago Board Choices Trade (CBOE), and NASDAQ OMX PHLX (PHLX). This 10-day name/put quantity ratio sits within the one centesimal percentile of its annual vary, indicating that such a skew is uncommon within the final yr.Â
