Investors in the iShares MSCI Emerging Markets ETF (EEM) can now trade new options set to expire in March 2027, marking an opportunity for higher premiums due to the long time until expiration. The $57.00 put option currently has a bid of $5.65, allowing investors to effectively acquire shares at a cost basis of $51.35, which is approximately 1% below the current trading price of $57.32.
Conversely, the $59.00 call option is priced at $5.85. Should investors opt for a covered call strategy, they would commit to selling shares at this strike price, potentially achieving a 13.14% return if the stock is called away by expiration. Current analytics suggest a 46% chance of the call contract expiring worthless, which would enable investors to retain both their shares and the premium collected.
The implied volatility for the put and call contracts is 33% and 34%, respectively, while trailing twelve-month volatility sits at 20%. These new options provide strategic ways for traders to navigate their positions in the EEM ETF.
