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

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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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