Bearish Bets on Stocks Outside the U.S. Emerge Timed to Fed
- EFA, EEM exchange-traded funds see bearish options bets
- Trade could be expecting jump in volatility: Susquehanna
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Some investors appear to be hedging against a slump in stocks outside the U.S., given prospects for a potential stronger dollar should the Federal Reserve announce plans to taper stimulus at its September meeting.
New bearish bets with Sept. 24 expiries are evident on the iShares MSCI EAFE (ticker EFA) and iShares MSCI Emerging Markets (ticker EEM) ETFs. The trades appear to be targeting the September FOMC meeting, according to Susquehanna derivatives strategist Chris Murphy.