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)
— Option Monster