Buzz is building regarding end to the US-Iran war. Diffused Middle East tensions will eventually restore order to global supply chains, hypothetically making international tech stocks -- such as Taiwan Semiconductor (TSM) -- much more appealing. This should put exchange-traded fund (ETF) iShares MSCI Emerging Markets (EEM) in traders' radars as a prudent summer play.
EEM is up 0.3% to trade at $62.38 today, a chip shot from its Feb. 27 record high of $65.96. The ETF has filled the March 3 bear gap wrought from the onset of the war. During that month-long pullback, support stepped up at its 200-day moving average.
EEM puts have been popular. Nearly three times as many puts as calls have been purchased during the past two weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This 10-day put/call volume ratio stands in the 87th percentile of its annual range, indicating that such a skew is rare in the last year.
Digging deeper, the June 63 call was the most active contract during this timeframe. The June 55 put was also a top five trade in the last two weeks.
