Bearish options on emerging market ETF soar to new high

NEW YORK: Traders pushed options bets that pay off when emerging-market stocks retreat to a 17-month high, speculating China's actions to restrain inflation will slow the global economic recovery.

The ratio of bearish put contracts to bullish calls on the US-listed iShares MSCI Emerging Markets exchange-traded fund (ETF) climbed to 1.97, the highest level since August 2008, data compiled by Bloomberg show.

Trading in options to sell the iShares MSCI Brazil Index Fund jumped to a record 214,404 on Jan 20, while puts on the iShares FTSE/Xinhua China 25 Index Fund reached 164,121 on Jan 21, the most in three months, data show.