Option Trades - June 12, 2015

I shorted the main land China market - CSI 300 today by buying a put on the ASHR ETF.  Today was a record high of $55.17.  It has been up 151% since June 16, 2014.

Details of the put:

• Strike price - $50.00
• Expiration date - January 15, 2016
• Cost 4.50

Other details:

• I used 10% of my option year to date trading profits to buy the put.
• Implied vol has decreased from 64.42 to 41.63 since June 9, 2015 (increase in the price).  This is very good if you are buying an option.

I can make profit 2 ways

• Price drops to $45.00 at expiration (I can sell to close at any time)
• If implied vol. increases.  If the price drops, or bad news comes out of China, etc the implied will increase.

Paul