Market Overview

Jim Strugger Shares Options Strategies for iShares MSCI Germany Index Fund (ETF) and Diamond Resorts


Jim Strugger of MKM Holdings suggested on Bloomberg Markets that investors should consider taking a long position in iShares MSCI Germany Index Fund (ETF) (NYSE: EWG) ahead of the ECB meeting. He wants to use options and buy the April 25 calls for $0.45.

Strugger also spoke about Diamond Resorts International Inc (NYSE: DRII). The stock is interesting for him because it might go private or become a takeover target. He thinks that there is going to be an announcement until August. If the deal happens or the company goes private, the stock should be valued between $32 to $35, thinks Strugger. To make a bullish bet, he wants to buy the August 25 call and sell two August 35 calls. He would have to pay a net premium of $2 for the trade.

The breakeven for the trade is at $27, but the profit is capped at $35 and it can maximally reach $8. Above $35, profit starts to decrease and it becomes negative above $43.

Posted-In: Bloomberg Markets Jim Strugger MKM Holdings Options InsightOptions Markets Media


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