Jul. 1 at 6:52 PM
$EEM took a hit today, sliding over 2.5% without any stock-specific news
The big move was a massive 52,498-contract Aug 21
$55 put buy
That's around
$2.6M in premium, way out of the money, signaling some serious tail risk hedging
Looks like institutions are more into protecting against downside than betting on a short-term drop
This kind of action keeps those far OTM puts pricey, putting pressure on anyone shorting that volatility
Over the past week, we've seen call sweeps at
$70,
$73, and
$75 with roughly double the premium of the bearish July
$65 put sweep
So, the short-term flow is mixed but that August put is definitely worth watching