Chinese ETFs - Because We Didn't Learn Our Lesson The First Time

nano · March 14, 2022, 1:19pm

Might be a bit late here, but getting a thread started to discuss a potential put play on Chinese ETFs (I know, I know).

@The_Ni, @JellyPowered, and I were discussing it this morning, seems like there may be an opportunity here with new Covid lockdowns, etc.

Rcc0330 · March 14, 2022, 2:59pm

Just got filled on a 4/18 26P for FXI after going back through and reading what @nano @The_Ni and @JellyPowered discussed in premarket, thanks guys.

MENoir · March 14, 2022, 3:33pm

Took a single FXI 4/14 26P for now. I’m ready to get hurt by another foreign ETF. Will monitor before deciding to add anything to this position.

nano · March 14, 2022, 4:34pm

Not a ton of OI on the 26 strike (though a good amount of volume today). I’m still watching, but looking at the 28 strike.

MENoir · March 14, 2022, 4:41pm

Yeah, hella volume today. My 26p was up 10% and is back down just above breakeven. Gonna watch for a few days maybe to see how it plays out.

nano · March 14, 2022, 4:55pm

I took one put around the $27.75 rejection.

HypnoDoge · March 14, 2022, 5:03pm

Have we considered looking at puts on $ASHR the Chinese ETF? It is down about 4% so far. Robinhood says it has a large concentration of companies in Shenzhen(the majority of the shutdowns are happening there I believe), so this could good for a quick scalp.

I also see that $BABA has made serious moves down, so maybe similar to $OZON, a way to indirectly short the Chinese market.

thots_and_prayers · March 14, 2022, 5:24pm

This will be good, Elaine can just re-use the same article and switch the ticker names

MENoir · March 14, 2022, 5:38pm

Full disclosure: I took 20% on that FXI put. Will be keeping an eye for reentry.

nano · March 14, 2022, 5:45pm

Got out of mine as well. Nice 15% gain.

Looks like FXI is somewhat SPY correlated and I think we could see a pop here, leading to another entry.

tizzle · March 14, 2022, 7:33pm

Jumped in FXI today with some 26p for 4/1. Picked them up for $1.01 avg.

MountainMan · March 14, 2022, 7:47pm

just sold my FXI 28p for 27%. got in this morning when i saw you guys talking about it on TF. i don’t want to hold these overnight so will look to get back in tomorrow if it presents itself.

thanks guys, great call!

nano · March 14, 2022, 7:48pm

Congrats! We were late getting in on this, but glad some people made money on it today.

The_Ni · March 14, 2022, 7:54pm

Just got:

FXI 4/14 28P - exposure to China large cap
KWEB 4/14 20P - exposure to China internet-based companies

Was also debating between but didn’t get:

EWH - tracks Hong Kong and reacted much to the Shenzen closings, but isn’t showing much life here
MCHI - broad exposure to China markets, similar to FXI, but less liquidity

Counting on some more negative pressure from a combination of COVID lockdowns and concerns around delisting from US markets.