China opened up their market and their SSE and A50 indeces dropped 8%. Hard drop. Won’t drop further down cause the gov wont let them sell, and it sure as hell aint gonna go up cause nobody in their right mind will buy shit when they’ll stay quarantined till the 10th. I hope you all put in YANG, FXI, EWT plays.
Here’s the play. SSE and A50 dropped 8%. Yang should open tomorrow at +24%. FXI at -8%. MASSIVE GAINS. If your options are ITM, don’t leave them there. Cash them, and buy OTM, same DTE. Your return will be higher because delta will compound much faster with multiple OTM options compared to a single ITM option. Having two or three OTM options compounding a delta of .6 gives you a much higher ROI than one ITM option with a delta of 1. Pop an addy and think about it until it makes sense.
If on Tuesday they experience the same drop and your option lands ITM again, keep doing this shit. If you’re gonna profit, optimize that shit.
Tldr; if your option opens deep ITM tomorrow morning, cash out and spend that money on OTM, same DTE options. Higher ROI.
edit: FXI does not track SSE or A50. It tracks Chinese companies listed in HK, so it wont drop as much as the SSE or A50. Apologies if I got your hopes up. That being said, the ASHR ETF directly tracks companies from mainland China. FXI tracks the biggest Chinese companies listed in HK. ASHR tracks the biggest companies listed in Shanghai. ASHR does a better job at tracking the 8% drop in SSE and A50. I am liquidating all my FXI positions and moving them over to ASHR tomorrow. ASHR is the new FXI.
Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence.