If you want to play the Chinese markets, you're largely relegated to FXI
. So which do you play from an options standpoint? With IVR
at 92 and at a comparable 89 in ASHR
, is it a rock, paper, scissors type of decision? I would say "no," and for a very simple reason: liquidity. While FXI
isn't great from a liquidity standpoint, ASHR
is, quite frankly, horrible, with options spreads exceeding .05 between bid and ask by several factors a great deal of the time. This can not only mean that you're not getting a "fair price" for your option, but also present problems in the event of your having to roll or close the setup at a favorable price.
16th Expiry FXI
25/28/39.5/42.5 Iron Condor
Max Profit/BPE: .39 credit/contract; 2.61/contract
Alternative Setups: Oct
23rd 27/39.5 short strangle (.96 credit; undefined BPE; 74% POP; Delta/Theta: -.23/2.88 (look to take off at 50% max profit); Oct
23rd 33.5/33.5 short straddle (4.43 credit; undefined BPE; 51% POP; Delta/Theta: -6.67/4.47 (look to take off at 25% max profit); Oct
23rd 27.5/33.5/33.5/39.5 Iron Fly (3.41 credit; 2.59 BPE; 41% POP; Delta/Theta: -7.97/1.51 (look to take off at 25% max profit).