Long Options Strategy on EWZ
Elections in Brazil have more or less settled down, and so has the initial volatility following results. While there is still some pessimism about President Luiz Inacio Lula da Silva's victory and consequent spending, the economy seems fundamentally strong enough to support it. Expanding the portfolio to foreign countries, iShares MSCI Brazil ETF (EWZ) includes exposure to commodities and oil/gas giants such as Petrobras and Vale.
Looking at the weekly chart, EWZ may rise to follow the bull flag, but this hedged options strategy can protect from a fall of <26% (to below $21.83) as of 6/16/23 while still maintaining the potential to quickly make up to 10% (18% annualized). EWZ is attractive to long-term investors as a dividend stock, which may buoy its valuation as well.
Buy 1 $29 Call
Sell 1 $31 Call
Sell 1 $22 Put
All expiring 6/16/23
Capital requirement: $2183
Looking at the weekly chart, EWZ may rise to follow the bull flag, but this hedged options strategy can protect from a fall of <26% (to below $21.83) as of 6/16/23 while still maintaining the potential to quickly make up to 10% (18% annualized). EWZ is attractive to long-term investors as a dividend stock, which may buoy its valuation as well.
Buy 1 $29 Call
Sell 1 $31 Call
Sell 1 $22 Put
All expiring 6/16/23
Capital requirement: $2183
免責聲明
這些資訊和出版物並不意味著也不構成TradingView提供或認可的金融、投資、交易或其他類型的意見或建議。請在使用條款閱讀更多資訊。