NaughtyPines

TRADE IDEA: FXI MAR/DEC 36/42 UPWARD CALL DIAGONAL

Long
AMEX:FXI   iShares China Large-Cap ETF
A bet that -- at some point going forward -- the U.S. and China will reach a meaningful trade agreement ... .

Metrics:

Max Profit on Setup: 2.00/contract
Max Loss/Buying Power Effect on Setup: 4.00/contract
Break Even: 40.00
Debit Paid to Spread Width Ratio: 4/6 (67%)
Theta: .51
Delta: 43.91

Notes: Roll short call out on significant loss of value (50% max, generally); start to look to take profit at 50% of max.
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