Options best bet: Barclays
NEW YORK: Investors should buy options on Chinese stocks while selling contracts on emerging-market shares because equity derivatives on the world's third-largest economy are cheap by comparison, Barclays Plc said.
Maneesh Deshpande, who leads the top-ranked derivatives strategy team in Institutional Investor magazine's 2009 survey, recommended buying options on the iShares FTSE/Xinhua China 25 Index Fund, a US exchange-traded fund tracking Chinese companies traded in Hong Kong, while selling options on the iShares MSCI Emerging Markets Index.
The New York-based derivatives strategist advised buying January $44 straddles on the iShares FTSE/Xinhua China index and selling January $41 straddles on the iShares MSCI Emerging Markets Index.
