Today’s tickers: EEM, VALE, CSCO, ALL, IBN, STT & XLE
EEM– Shares of the emerging markets ETF have jumped 5% today to stand at $31.58. Ignoring the current bullish movement in the underlying share price, one option trader looked to the December contract to initiate a ratio put spread in the expectation that shares may decline by expiration. The investor established the trade by purchasing 5,000 puts at the December 31 strike price for 3.71 each spread against the sale of 10,000 puts at the December 25 strike for a premium of 1.51 apiece. The net cost of the transaction amounts to 69 cents and yields a maximum potential profit of 5.31 to the trader if shares were to fall to $25.00 by expiration. – iShares MSCI Emerging Markets Index ETF
CSCO – Networking and communications products manufacturer and tech bellwether, Cisco Systems, Inc.,…