Categories: Bull Market Alert HotlinesStock Market News

Booking 66.4% Option Gains in Emerging Markets and 115.38% in China

After Monday’s big rally in the stock markets, and yesterday’s news that the United States managed to avert the dreaded “fiscal cliff,” global markets are rallying sharply today.

And it’s when markets rally sharply that options enjoy their biggest gains.

So, today I am recommending that you sell half of your February $43 call options in the iShares MSCI Emerging Markets Index (EEM) for a 66.4% gain and half of your February $40 call options in iShares FTSE China 25 Index Fund (FXI) for a 115.38% gain.

Hold on to both the underlying ETF holdings, ProShares Ultra MSCI Emerging Markets (EET) and ProShares Ultra FTSE China 25 (XPP), as well as your remaining options, for potentially bigger gains in the weeks ahead.

Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world. He was the Editor of The Global Guru, a free weekly e-newsletter, and also edited the trading services Momentum Trader Alert, which focused on making short-term profits in the hottest markets in the world, and The Alpha Algorithm, which was designed specifically to deliver big, fast triple-digit winners, month after month. He was also the editor of Smart Money Masters, a monthly service focused on longer term investments recommended by the brightest minds in the business. Mr. Vardy has been a regular commentator on CNN International and the Fox Business Network. He has also published articles in The New Republic, The World and I, and The Baker & McKenzie Legal Review. The Global Guru/Nicholas Vardy has been cited in The Wall Street Journal, Newsweek, Fox Business News, CBS MarketWatch, Yahoo! Finance, and MSN Money Central. Mr. Vardy graduated from Stanford with a B.A. — with honors and distinction — in both Economics and History, and he also earned an M.A in Modern European Intellectual History. After winning a Fulbright Scholarship, he earned a J.D. degree at Harvard Law School where he was an editor of the Harvard International Law Journal. When not uncovering investment opportunities for his subscribers and investors, Mr. Vardy is a keep-fit enthusiast and an avid student of classical music.