If you want to play the Chinese markets, you're largely relegated to FXI or ASHR. So which do you play from an options standpoint? With IVR in FXI 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.
EXAMPLE:
Oct 16th Expiry FXI 25/28/39.5/42.5 Iron Condor
Max Profit/BPE: .39 credit/contract; 2.61/contract
POP%: 68%
Delta/Theta: .3/.8
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).
EXAMPLE:
Oct 16th Expiry FXI 25/28/39.5/42.5 Iron Condor
Max Profit/BPE: .39 credit/contract; 2.61/contract
POP%: 68%
Delta/Theta: .3/.8
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).