Comments on: Is China a leading indicator?

By: Technical analysis: Shanghai Index looking more bearish | SMSF Investment Strategies

Tue, 16 Mar 2010 05:13:52 +0000

[...] RSS feed. Thanks for visiting!I have been tracking the Shanghai Composite Index on this blog since August 2009, when it made a sharp 20% correction. When I last looked at the Shanghai Composite Index on [...]

By: Investment Strategy: Be aware of asset bubbles and know when to take profit | SMSF Investment Strategies

Tue, 25 Aug 2009 05:25:25 +0000

[...] that I have been monitoring closely is the Chinese economy as mentioned in my earlier post “Is China a leading indicator?” The main reason for watching China is because Australia’s fortunes are so closely [...]

By: mazzatelli

mazzatelli — Thu, 20 Aug 2009 09:12:21 +0000

Sounds good!!! Best of luck!!!

Vol does seem high relatove to past. Although the put benefits from vol skew, decline in vol-line outweigh and hurt.

Have you considered being long spot with stop loss. Once partial gains are realised to convert to synthetic call? The effect will be legging into call for a credit or very small debit [close to risk free].

By: Christina

Christina — Thu, 20 Aug 2009 06:50:34 +0000

Quite true. My timeframe is at least few months as last down leg lasted 12 months. Options are pretty expensive as IV is about 85% so I decided to buy FXP and a Sept09 put option just to limit initial downside risk. If the trade works, my plan is to roll up my put to lock in unrealised gains.

By: mazzatelli

mazzatelli — Thu, 20 Aug 2009 06:18:24 +0000

I don’t know your timeframe but long FXP + put = FXP call
Could save you margin and commissions

By: Christina

Christina — Thu, 20 Aug 2009 06:02:27 +0000

Hi Mazzatelli
Thanks and thank you for posting a comment. We are a new blog so it is nice to get feedback to know how we are doing.
Christina

By: mazzatelli

mazzatelli — Thu, 20 Aug 2009 05:21:08 +0000

Hi Christina,
Great blog!!!

Will be following with interest