Investors in the iShares China Large-Cap ETF (NYSE: FXI) began trading new options today for the March 2027 expiration, offering potential opportunities for put and call sellers. The put option at a $33.00 strike price has a current bid of $2.16, representing a 7% discount to FXI’s current trading price of $35.59. Selling this put could lead to a cost basis of $30.84 per share, with a 68% chance the contract may expire worthless and deliver a 6.55% return on cash commitment.
On the call side, the $40.00 strike price has a bid of $2.08, offering a potential total return of 18.24% if FXI shares are called away at expiration. The $40.00 strike is approximately 12% above the current price, with a 58% probability it could expire worthless, allowing investors to retain both shares and premium earnings. Implied volatilities for put and call contracts stand at 36% and 27%, respectively, while trailing twelve-month volatility is calculated at 24%.
