[Opening Put Position in Brazil Index ETF (EWZ)]
Dear Member:
The iShares MSCI Brazil Index ETF (EWZ) has bounced down off the downtrend line on both the daily and weekly charts and DMI has turned negative. Historically, the index has been relatively volatile so I am going to depart from my more common practice of buying in the money options and place an order for well out of the money puts. The ETF currently is trading around 75 and I am placing an order to buy the Jun 55 puts (EWZRK) at a limit of $2.10. Buying so far out of the money can be a high risk play, but in this instance, my risk is limited to what I spend for the puts.
DISCLOSURE: At the time of publication, I have no position in the referenced puts or the underlying ETF.
Sincerely,
Bill Kraft
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