Direxion offers leveraged ETFs tracking the (inverse) performance of the China FTSE 50. I happened to grab a call on the YANG (i.e. I was bearish on the Chinese market) a few months ago, and it's now up a lot thanks to global events.
Frankly, when I opened the position I wasn't expecting everything that's happened since, and I'm a bit out of my depth. I've got my trailing stop-limit order set up to catch any reversion, but my question is: what's the likelihood of this option being made almost immediately (or overnight) worthless somehow? If China closed its stock exchange like Russia did (I don't think they would, but who knows at the moment), what would the impact be on my position? Would it still be tradable, would anyone want to buy it, and what would happen to its value? Direxion isn't beholden to the Chinese government, but I'm struggling to follow exactly what financial institutions the YANG actually relies on in extreme circumstances.
TL;DR: I shorted the Chinese stock market, it's printing unexpectedly, and now I want to know how greedy I can get before the house of cards collapses.
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