Geopolitical and Currency Depreciation Hedge

If the Taiwan Straits or Chinese situation greatly escalates, OTM puts on the China and Taiwan ETFs aren't a bad idea. My preferred vehicle for China is ASHR because it is the Mainland stocks most likely to be hit by sanctions policy. ASHR also opens up potential gains from currency depreciation of the yuan if the dollar takes off. I bought closer to the money for Taiwan, August puts, because as a tech-heavy fund and I think it could slide with the rest of the market. For ASHR, I went way out of the money into October. It is solely a hedge against a major geopolitical escalation that sends the ASHR fund down to near zero before it is suspended, like the Russia ETFs.
USDCNY still looks bullish and I see a similar formation to 2015 on CNYJPY.


  1. Yo, LZ. How ‘bout OTM Aug options on UVXY ?

    1. …as a way to profit if Pampers Lugosi really does kick off ww3.