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 MSCI Emerging Markets Index is up more than 25 percent year-to-date, putting the widely-followed gauge of developing world equities on pace for its best annual performance since 2012. Investors are responding, making emerging markets exchange traded funds (ETFs) some of this year's top asset-gathering funds.
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Risk-tolerant, tactical traders can take advantage of short-term emerging markets trends with leveraged ETFs, such as the Direxion Daily MSCI Emerging Markets Bull 3X Shares (NYSE:EDC). EDC is designed to deliver triple the daily returns of the MSCI Emerging Markets Index.
A bet on EDC, or any traditional diversified emerging markets ETF for that matter, is a heavy bet on Asia. The MSCI Emerging Markets Index allocates over 55 percent of its combined geographic weight to China, South Korea and Taiwan.
Price Action
Emerging markets had been lagging developed markets stocks for several years, a trend that showed signs of breaking last year as measured by the ratio of the MSCI Emerging Markets Index against the MSCI EAFE Index.
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Direxion Daily MSCI Emerging Markets Bear 3X Shares (NYSEARCA:EDZ) has average inflows of more than $314,000 per day over that period.
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Big Markets
The performances of EDC and EDZ on the bearish side, are largely determined by the largest emerging markets, such as China and India.
“Much like the U.S, China’s economy has been in a pattern of middling growth interspersed with brief spurts of productivity. In recent months, this trend has manifested in an upswing in China’s manufacturing PMI by one to two points above the benchmark,” said Direxion.
India, Asia's third-largest economy, is expected to post GDP growth of 7 percent this year, a rate that is expected to hold true for another eight years. Some traders are responding to those India expectations as the Direxion Daily MSCI India Bull 3X Shares (NYSEARCA:INDL), the only leveraged India ETF, has seen a sharp uptick in turnover in recent sessions.
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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.