Investors looking to hedge against sharp stock declines because of events in Europe will find...


Investors looking to hedge against sharp stock declines because of events in Europe will find some of the cheapest protection in Japan. Implied volatility for puts on a Japan ETF (EWJ) is sharply lower than that for the Spiders (SPY). "If things turn really bad, you wouldn't expect anyone to escape," says a Barclays strategist. "Nikkei really stands up as one of the best places to buy puts."

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  • inquisitivemind7
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    Is there any sizeable volume on the Nikkei option chain and what are the tax implications of trading options on foreign indices? IWM, QQQ, and SPY offer nice volumes and you don't have to worry about foreign tax implications.
    2 Oct 2011, 12:29 AM Reply Like
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