Huge hedge in emerging markets

An enormous put trade tops today’s option activity in the iShares Emerging Markets Fund as it slips again.

optionMONSTER’s Depth Charge system show that a trader bought 104,000 December 35 puts for $0.90 and sold the same number of December 27 puts for the bid price of $0.12.

The trader is spending $0.78 on this huge out-of-the-money play, which is maximum amount at risk. The maximum potential gain in this vertical spread is $7.22, or just over $75 million, if the EEM is below $27 by the end of the year. (See our Education section)

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— Option Monster

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