Yesterday the EEM saw 387,000 options change hands, compared with a daily average of 86,000. Much of this was in a four-way spread that traded just before lunchtime.

A trader sold a put spread, unloading 32,607 January 37 puts for $1.64 and buying the same number of January 32 puts for $0.26. The volume at both strikes was much less than the previous open interest.

Seconds later, the trader bought 65,214 March 35 puts for $2.03 and the same number of March 29 puts for $0.62. Here the volume was more than open interest at both strikes. So it appears that this trader was rolling the put spread to a lower strike in later contracts, keeping the cost about the same but doubling the position's size. That latter point suggests this trader sees the potential for new yearly lows.

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