Yesterday you booked 115.38% gains in your iShares FTSE China 25 Index Fund (FXI) $40 call options, as well as 66.4% gains in your iShares MSCI Emerging Markets Index (EEM) $43 call options.
In fact, you may have even bigger profits, as these positions just kept on going as the trading day progressed.
As of the close of trading yesterday, the FXI call options were up 124.04% and the EEM options were up 103.92%.
I believe these options are overvalued because of their significant “intrinsic volatility.”
So I’m recommending that you take your option money off of the table for now, by selling all of your remaining options in both of these positions to lock in your gains.
In addition, I’m recommending that you sell half of your positions in ProShares Ultra FTSE China 25 (XPP) and ProShares Ultra MSCI Emerging Markets (EET), to lock in double-digit percentage gains of 12.9% and 11.72%, respectively.
Hold on to the rest for potentially bigger gains in the weeks ahead.
Note that your position in Japan — ProShares Ultra MSCI Japan (EZJ) — is already up 6.41% in two days, and the options are already up 36.36%.
