(Close) Macro Theme Brazil: Trade Idea 2 November 8, 2016, Buy Puts on Bovespa
I recommend buying a 5% OTM 6-month put (61000 strike) on Bovespa at 64,000, and the BRL at 3.22. The cost was 3%. I recommend take this trade off today given the sell of of Bovespa to 57200. The BRL was 3.39 and the put was at 8.3%. However the net payout after currency adjustment was 130%. I would recommend putting this trade back on if Bovepa rallied back to the 64,000+ level.