Noticed that the iShares MSCI Brazil Capped ETF ticker symbol is not here in IN.
$EWZ
NOT the $EWZS
Anyway, I have sold a whole bunch of put options to capitalize on the volatility from the brazilian presidency scandal.

Exercise price $35, expiry on 30th June, premiums at $1.48.

Rationale:
South American countries have a revolving door when it comes to who's in power. Reference argentina, which is probably the worst I've seen.
Yet in the mid term, there's little implication to the major banks within the country.
Collectively, the 2 major brazilian banks constitute almost 20% of this ETF, so it's barometer of the financial system of Brazil.
I have chosen to go via the options route instead of being long the equity directly as political scandals can drag on for a long time, so I'd like to have time on my side.
So here's the breakdown:

By the 30th June, if the ETF price stays above $35, I'd pocket $1.48 each contract sold.
If the ETF goes below $35 but above $33.52, I can easily cover and pocket the premium difference
If the ETF goes below $33.52, I'd end up buying the ETF at $35, but still pocket my $1.48.
So my entry price is effectively $33.52.
But that's not all, I'll be selling further out of the money exercise prices for lower premiums, so in all likelihood, my entry price if it materializes, would be around $33.

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