Investors in the iShares Inc – MSCI Brazil ETF (EWZ) can now access new options for March 2027. A notable opportunity arises from a put contract at a $30.00 strike price, currently with a bid of $1.62. Selling this contract commits the investor to buy shares at $30.00, effectively lowering the cost basis to $28.38 per share, a 22% discount compared to the current share price of $38.35.
Additionally, there is a call contract at a $39.00 strike price, with a bid of $3.25. By purchasing shares at $38.35 and selling this covered call, an investor could see a potential total return of 10.17% if the stock is called away at expiration. The odds of the put contract expiring worthless are currently estimated at 79%, while the covered call has a 45% chance of expiring worthless, allowing the investor to retain both shares and premium.
