Buy Emerging-Market Put Options, Sell Japan’s, Barclays Says
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Investors should buy put options to sell emerging-market stocks because they may retreat amid rising commodity prices, while selling puts on Japanese stocks, which may rally on earthquake reconstruction, Barclays Plc said.
Maneesh Deshpande, who leads the top-ranked equity-linked strategies team in Institutional Investor magazine’s 2010 survey, recommended buying January $47 puts on the iShares MSCI Emerging Markets exchange-traded fund and selling January $9 puts on the iShares MSCI Japan ETF. The emerging fund rose 1.2 percent to $47.64 as of 4 p.m. in New York while the Japan ETF slipped 0.2 percent to $10.29.