$X-trackers Harvest CSI 300 China A-Shares Fund(ASHR)$ π¨π³π₯±π¨π³πππ
CHINA is waking up and stocks are coming out of weak positions and the doom loops they have been in. It's all about China today! This stock looks good long term, it will chop and dip along the way, however big upside later when things get revved up. Projecting $44 in 2026.
September 13th 2024:
Investors in Xtrackers Harvest Csi 300 China A-shares Etf (Symbol: ASHR) saw new options begin trading today, for the December 20th expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 98 days until expiration the newly trading contracts represent a possible opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ASHR options chain for the new December 20th contracts and identified the following call contract of particular interest.
The call contract at the $24.00 strike price has a current bid of 3 cents. If an investor was to purchase shares of ASHR stock at the current price level of $22.46/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $24.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 6.99% if the stock gets called away at the December 20th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if ASHR shares really soar, which is why looking at the trailing twelve month trading history for Xtrackers Harvest Csi 300 China A-shares Etf, as well as studying the business fundamentals becomes important. Below is a chart showing ASHR's trailing twelve month trading history, with the $24.00 strike highlighted in red:
Considering the fact that the $24.00 strike represents an approximate 7% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 67%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 0.13% boost of extra return to the investor, or 0.50% annualized, which we refer to as the YieldBoost.
The implied volatility in the call contract example above is 23%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $22.46) to be 17%. For more put and call options contract ideas worth looking at, visit
Stockoptionsm.com
@Tiger_comments @Daily_Discussion @TigerPicks @TigerStars @TigerGPT @TigerPM @TigerOptions
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
The X-trackers Harvest CSI 300 China A-Shares Fund (ASHR) experienced a significant increase on September 13th, 2024. The fund surged 7.48% due to investor optimism over China's recent monetary policy moves aimed at spurring economic recovery. The People's Bank of China has implemented supportive measures such as lowering the reserve requirement ratio for banks, cutting interest rates, and reducing mortgage rates for existing loans. These actions are expected to increase market liquidity and drive growth in key sectors, including real estate.
Additionally, the ASHR ETF saw a surge of 5.76% in pre-market trading on that day. Investors were optimistic about China's monetary policy moves, which are aimed at boosting economic recovery. The central bank's actions, such as lowering the reserve requirement ratio for banks and reducing mortgage rates, are expected to increase liquidity in the market and drive growth in key sectors.
Based on the available news, it appears that the positive movement in ASHR is driven by market optimism surrounding China's monetary easing measures. These policy actions are expected to stimulate economic growth and benefit various sectors.
Please note that this analysis is based on the available news, and it's important to conduct further research and analysis before making any investment decisions.
Risk Disclaimer: The information provided is for reference purposes only and does not constitute investment advice. Investing in stocks involves risks, including the potential loss of principal. It is essential to consider your investment goals, risk tolerance, and seek professional advice before making any investment decisions.
Great article, would you like to share it?
Great article, would you like to share it?
Great article, would you like to share it?