Trade of the Week: Emerging Market Bonds

Emerging Markets, Trade of the Week
by Jay Soloff
Subscribe to all of Jay Soloff’s free trading research

The iShares JP Morgan USD Emerging Market Bond ETF (EMB) is an asset allocation fund for those wanting exposure to emerging market government bonds. The ETF pays a reasonable dividend but it doesn’t generally move all that much. A well-capitalized trader is likely trying to boost returns on the low-volatility product by utilizing a covered call strategy.

Author: Jay SoloffJay Soloff is the Options Portfolio Manager at Investors Alley. Jay is also the editor for 48-Hour Income, Options Insiders, and co-editor of Weekly Income Accelerator and POWR Income with Tim Plaehn. Prior to joining the online investment world, Jay was a floor trader and market maker on the CBOE, the world's largest options exchange. His experience includes trading a multi-million dollar options portfolio in equities options as well as serving as a consultant to Wall Street options trading groups. Jay also spent time as a senior analyst at a hedge fund of funds, where he analyzed professional options funds as well as traded option strategies for hedging purposes. All told, Jay has 20 years of options trading experience. He received his undergrad degree in Economics at the University of Illinois - Champaign, and his MBA and Master of Science in Information Management from Arizona State University.
Subscribe to all of Jay Soloff’s free trading research