VERY ODD Option Activity - EEM - MarketTicker Forums

Posted 2007-05-02 14:21
by Karl Denninger

10,102 contracts have traded thus far today on the June 90 strike.

That is crazy out of the money - by more than $33.

The last sale was in the middle; that looks like an acquisition, not an unloading. I'll check the OI in the morning, but if that is an acquisition, its a damn big one -and that far out of the money, it is extremely ominous.

That's the emerging markets ETF by the way..... either someone is ditching a bad position, knows something is coming internationally, or that's one of the nuttiest bets (albiet modestly cheap - $100kish) that I've seen in a long time.

Update - the PUTs did not "Stick". However, there was also very little net distribution. In other words, the total OI, while it went down a bit, did not account for the difference.

So this has to be reclassified as a "neutral" indicator - at this time.

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