Bullish three-way spread in iShares Emerging Markets Fund
Bullish three-way spread in iShares Emerging Markets Fund. Shares ticking 8c higher to $42.90 and 58K Sep 1st 41.5 puts sold at 34c to buy 58K Sep 1st 43 - 44.5, 1X2, call spreads for 41c. The spread expresses confidence that emerging markets will hold steady, and shares won't drop below $41.5, through the rest of this month. The best payout happens if shares trade to $44.5 by September 1. A similar spread printed yesterday when 58K Sep 1st 41 puts sold to buy 58K Sep 1st 43.5 - 44.5 call spreads. Timing of the trades is noteworthy as China, which accounts for 28% of the portfolio and the largest weighting among the emerging market countries in the ETF, is due to report a flood of economic data over the weekend.