Everyone knows the equity markets have been putting up a solid 2017.  The S&P 500 is up about 12% and developed markets, excluding North America, as measured by the MSCI EAFE (MXEA) Index is up about 17.5% for 2017.  However, emerging markets, as displayed by the performance of the MSCI Emerging Markets Index (MXEF) has gained almost 29%.  The chart below shows the performance for MXEF in 2017.    
MXEF YTD

A big trade came into the MXEF post at CBOE yesterday that seems to expect continued strength from emerging markets, at least through October standard expiration.  With MXEF around 1109 there was a seller of the MXEF Oct 1100 Puts.  They sold a total of 6,000 contract in three different lots, selling 2,985 at 13.00, a 10 lots at 13.40, and then selling another 3005 for 14.30.  This works out to selling 6,000 MXEF Oct 1100 Puts at just over 13.65 a contract.  The payoff, if held through October expiration, appears below.

This is a fairly bullish trade, but there is a 0.8% buffer between the short strike and where MXEF was when the trades were executed yesterday.  Also, the break-even level for this trade is 1086.35, down about 2% from where MXEF was yesterday. 

MXEF PO

To learn more about MSCI options offered at CBOE check out www.cboe.com/msci