The iShares MSCI Emerging Markets exchange-traded fund (EEM) is up 25% this year, and this gain has pushed the fund above $40. This level has often stood as resistance. Since 2011, rallies above $40 have created opportunities for profits.
Emerging markets--specifically China--have taken off this year. In addition, MSCI added China to its emerging market tracking index. This opens up the chance for China's stocks to become a bigger part of investment portfolios.
Investors can add—or increase—exposure to the rally, while also limiting their risk, by buying options on the iShares MSCI Emerging Markets ETF.
Read more at Barron's.