$iShares China Large-Cap ETF (FXI.US)$ Today, assets in Chin...
$iShares China Large-Cap ETF (FXI.US)$ Today china assets surged.
The People's Bank of China announced several policies:
First, reduce the deposit reserve ratio. Pan Gongsheng announced that the deposit reserve ratio will be lowered by 0.5 percentage points in the near future, providing approximately 1 trillion yuan of long-term liquidity to the financial market.
Second, reduce the interest rates on existing housing loans and unify the minimum down payment ratio for housing loans.
三是创设新的政策工具，支持股票市场发展。First, reduce the deposit reserve ratio. Pan Gongsheng announced that the deposit reserve ratio will be lowered by 0.5 percentage points in the near future, providing approximately 1 trillion yuan of long-term liquidity to the financial market.
Second, reduce the interest rates on existing housing loans and unify the minimum down payment ratio for housing loans.
Therefore, considering FXI, a China large cap stocks ETF, the options strategy is to create a synthetic long position in stocks.
If considering single-leg contracts, choosing a rolling sell Put strategy will suffice.
If considering single-leg contracts, choosing a rolling sell Put strategy will suffice.
Trading strategy combination - FXI (China large cap stocks ETF).
Sell Put on October 25 with a strike price of $28, receiving a premium of $1.24, leading to an annualized return of 50.5%.
Buy Call on October 25 with a strike price of $28, paying a premium of $0.64, closing the profit position at $29.5.
Potential return: 1.5
Potential loss: ($0.64)
Risk-reward ratio: 2.34 times
Buy Call on October 25 with a strike price of $28, paying a premium of $0.64, closing the profit position at $29.5.
Potential return: 1.5
Potential loss: ($0.64)
Risk-reward ratio: 2.34 times
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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