Long China?

Directional Assumption

Long China via FXI (iShares China Large-Cap ETF)

The Narrative

  • A better US-China relationship under Biden?
  • Despite the setback from the Ant IPO debacle, China is opening up its capital markets to foreign investors (link)
  • Post-Covid recovery appears sustainable buoyed by huge domestic consumption economy

Trading / Investing Strategy

  • IV rank is low at 18. Debit call strategy at 43/45 with DTE about 59 days. Anticipate year end window dressing bullish seasonality factor.

Downside Risks

Increasing corporate defaults (link link2 link3)

Disclaimer: This is not an investment / trading advice or endorsement. Please refer to the general disclaimer of this blog.

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