Jim Strugger of MKM Holdings spoke on Bloomberg Markets about an
options trading strategy in iShares MSCI Mexico Inv. Mt. Idx. (ETF) (NYSE: EWW).
He thinks that the ETF is oversold and it is all related to the Mexican Peso rate. Strugger explained that the Mexican monetary
authority is going to support the Peso and he wants to set up a bullish options strategy to profit from a potential move
higher.
He wants to sell the March 40 put and buy the March 46 call. The
risk reversal would cost him $0.15 and he is going to make money if iShares MSCI
Mexico Inv. Mt. Idx. (ETF) trades above $46.15 at the March expiration.
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