The Bank of Japan’s quantitative easing has put a fire under Asia’s biggest stock market, as Japan’s Nikkei continues to soar.
Your position in the ProShares Ultra MSCI Japan (EZJ) is now up 13.77% during the past month.
Your option play on the Japanese market — the August 2013 $45 call options in WisdomTree Japan Hedged Equity (DXJ) — is now up 71.43%.
With the market rising so sharply, these options have become overvalued for the short term. So I am recommending that you sell half of your call options here to lock in your big gains.
Hold on to the rest of your DXJ options for potential triple-digit percentage gains in the days and weeks ahead.
Also, I am recommending that you sell half of your position in ProShares Ultra MSCI Japan (EZJ) to lock in a 13.77% gain on that portion of your position. Raise your stop to $76.80. That will lock in double-digit percentage gains in case of a pull back.
Note that since Japan’s Nikkei is up another 1.96% overnight, you may exit these positions at an even better price than indicated above.