Davis Martin, head trader at DailyProfitMachine.com says that with China showing weakness pre-market and pulling back, it’s time to look at options on the iShares China Large-Cap ETF (FXI) as one of the few places with the volatility necessary for a chance to “buy the dip.” Martin is planning to buy January options on the FXI, assuming that China reaches the market open still showing the weakness that was evident pre-market.
Davis Martin is the head trader at DailyProfitMachine.com. He trades SPY calls and puts and swing trades mid-large cap stocks and stock options. At the time this interview was taped — pre-market on Oct. 19 — he had no shares, options or open orders on FXI, though he was looking to buy options after the market opened, as described in this conversation. The Raging Bull podcast features experts from the site talking with Raging Bull editor Chuck Jaffe on his show, “Money Life with Chuck Jaffe.” You can learn more about Chuck’s daily hour of market and personal-finance chat at MoneyLifeShow.com; you can subscribe to the Raging Bull podcast via iTunes and other podcast providers.