Bearish trade in Emerging Markets ETF suggests $570M 1yr notional hedge
Bearish trade in Emerging Markets ETF suggests $570M 1yr notional hedge. Massive spread traded on NYSE-Arca this morning as a trader paid $1.39 for 142300 Dec 30/37 put spreads against a sale of 42690 Dec 41 calls for $3.31. All three legs open, and the put-spread outlay near $20M is offset by the credit on the call sale, for a net debit near $6M. Call sold is struck 1.5% above spot, while the put spread bought provides protection starting about 8% below spot and extending to nearly 26% down. Block of similar size in a shorter-term was noted a week ago when a trader sold 140K March 36 puts at 41c to open when shares were about 60c below todays 40.36 level.