Options Trading for iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB) in the First Week of June 2026
Put Contract Overview: The $92.00 put contract for EMB offers a 4% discount to the current price, with a 65% chance of expiring worthless, potentially yielding a 0.43% return on cash commitment.
Call Contract Overview: The $97.00 call contract allows for a 1.25% total return if the stock is called away, with a 59% chance of expiring worthless, providing a 0.26% additional return if it does.
Volatility Insights: The implied volatility for the put contract is 11% and for the call contract is 10%, while the actual trailing twelve-month volatility is calculated at 7%.
YieldBoost Concept: Both put and call contracts offer potential YieldBoosts, with the put yielding 0.66% annualized and the call yielding 0.39% annualized if they expire worthless.
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Analyst Views on EMB

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- Bond Market Performance: The bond market experienced its best year since 2020, surprising income investors who were losing hope.
- Future Outlook: Despite some emerging risks, the outlook for the bond market in 2026 remains positive.

Potential Investor Surprises: Morgan Stanley's global strategy team, led by Matthew Hornbach, has identified potential surprises that could catch investors off guard in 2026.
Research Note Publication: The findings were shared in a research note published on Friday, highlighting developments not currently factored into consensus thinking.

Dividend Declaration: iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB) has declared a monthly dividend of $0.3829 per share, payable on December 24 for shareholders of record on December 19, with an ex-dividend date also on December 19.
Market Insights: SocGen reports that credit markets are showing resilience, although they anticipate limited upside potential moving forward.
Concerns Over Bond Yields: HSBC Asset Management's chief strategist, Joe Little, expresses worry about the unusual behavior of ultra long-term government bonds, which are not responding as expected to central bank rate cuts.
Central Bank Actions: Despite central banks continuously lowering policy rates over the past few years, long-term bond yields have remained stubbornly high or increased, which is atypical according to Little.

Put Contract Overview: The $95.00 put contract for EMB offers a current bid of 10 cents, allowing investors to potentially buy shares at a lower cost basis of $94.90, which is attractive compared to the current price of $96.37.
Expiration Odds and YieldBoost: There is a 59% chance that the put contract will expire worthless, providing a potential return of 0.11% on the cash commitment, or 0.44% annualized, referred to as YieldBoost.
Call Contract Overview: The $97.00 call contract has a bid of 70 cents, allowing investors to sell shares at this price, which could yield a total return of 1.38% if the stock is called away by February 2026.
Expiration Odds for Call Contract: The call contract has a 54% chance of expiring worthless, which would allow investors to keep their shares and the premium, resulting in a potential YieldBoost of 0.73% or 3.05% annualized.

Put Contract Overview: The $92.00 put contract for EMB offers a 4% discount to the current price, with a 65% chance of expiring worthless, potentially yielding a 0.43% return on cash commitment.
Call Contract Overview: The $97.00 call contract allows for a 1.25% total return if the stock is called away, with a 59% chance of expiring worthless, providing a 0.26% additional return if it does.
Volatility Insights: The implied volatility for the put contract is 11% and for the call contract is 10%, while the actual trailing twelve-month volatility is calculated at 7%.
YieldBoost Concept: Both put and call contracts offer potential YieldBoosts, with the put yielding 0.66% annualized and the call yielding 0.39% annualized if they expire worthless.






