Trade Of The Week: Emerging Markets

Covered calls can be a strategic path toward increasing cash flow on a position while waiting for it to rally. For instance, last week a trader purchased 15,000 covered calls in iShares MSCI Emerging Markets ETF (EEM).

EEM is a popular asset class ETF used to gain exposure to emerging markets. This trade is using out-of-the-money January 2025 calls, which could be a way to generate additional cash on the position while expecting a long-term rally in emerging markets. 

(Click on image to enlarge)


To watch the video, click here. (Running length 00:03:39)


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