27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
The emerging markets have been out of favor the last few years as they have lagged the returns in the U.S. The iShares MSCI Emerging Markets ETF (NYSE: EEM) lost 6 percent in 2014, underperforming the S&P 500 by nearly 20 percent. News that China’s economy is slowing and the possible trickle down affects from a European economy on the brink of recession have only scared potential investors recently.
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With the negative news already out there it could be time for money to flow back into the emerging markets in 2015. Through the first three weeks of the year EEM has gained 2.5 percent, easily beating the U.S. indices. This week the ETF broke out to the highest level in six weeks as the U.S. market remains down for the year.
The low oil prices have hurt some countries, while others that import a sizable portion of their energy will benefit. Three countries that stand to benefit greatly from low oil prices are Taiwan, India, and Turkey. Lower oil prices will allow these countries to reduce inflation as well as their account deficits. One aspect to note is that the lowering of inflation too much could be a negative. This week Turkey cut their interest rates due to that scenario, even though inflation is currently at 8.2 percent.
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Highlighted below is an ETF for each of the emerging market countries mentioned above.
The iShares MSCI Taiwan Index ETF (NYSE: EWT) is made up of 104 large and mid-sized companies in Taiwan across nine sectors with information technology at 59 percent and financials at 17 percent being the most heavily weighted sectors. The top individual holdings include Taiwan Semiconductor Manufacturing (NYSE: TSM) at 22.4 percent, Hon Hai Precision Industry Inc making up 7.2 percent, and Mediatek Inc coming in at 4.7 percent. EWT is up 10 percent over the last 12 months and up 2.3 percent in 2015. The ETF has an expense ratio of 0.62 percent.
The WisdomTree India Earnings Fund ETF (NYSE: EPI) consists of 232 Indian companies across 10 sectors with financials at 28 percent and information technology at 17 percent the most heavily weighted sectors. The top holdings include Infosys Ltd (NASDAQ: INFY) making up 7.6 percent, Reliance Industries Ltd with a 7.3 percent holding, and Housing Development Finance Co at 6.8 percent. The India ETF is up 41 percent over the last 12 months and 9 percent this year. EPI has an expense ratio of 0.83 percent.
The iShares MSCI Turkey ETF (NYSE: TUR) is comprised of 80 Turkish companies across nine sectors with financials at 46 percent and industrials at 14 percent the top weighted sectors. The top individual holdings include Turkiye Garanti Bankasi at 12 percent, Akbank making up 8.5 percent, and Turkcell Iletisim Hizmetleri (NYSE: TKC) coming in at 6.8 percent. TUR is up 30 percent over the last 12 months and has gained 6 percent in 2015. The ETF has an expense ratio of 0.62 percent.
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.