Top 9 Stocks to Trade This Fall

Trade #5 – iShares FTSE/Xinhua China 25 Index (FXI)

By Michael Shulman

Official Chinese statistics should filed in the fiction section of libraries, the government is finally starting to put the brakes on some of the
reckless lending that spilled into equity markets, and China ain’t the engine of growth people think it is — in short, it’s a train wreck waiting
to happen.

So, short China by buying put options on the iShares FTSE/Xinhua China 25 Index (FXI), which does
not represent domestic Chinese equity markets, per se, but it’s close enough.

Look at out-of-the-money October FXI puts, and shoot for a 40%-plus gain. Warning: These puts are not very liquid, spreads can be disconcerting,
and you should only use limit orders.

NEXT – Trade #6