​Tuesday, July 7 – China A-Share Buying; DEDZ6 In Focus

The markets saw some spectacular reversals today. With the VIX heading south, traders are wondering why the index isn’t accurately showing what they feel is inherent risk in the system. Greece and China pose fairly significant risks to the global economy, but the VIX hasn’t moved above 20. Speaking of China, some U.S. ETF investors are taking long positions on the A-Shares market, following the crash in China equities that has seen about a third of the value wiped off the Shanghai Composite. Meanwhile, in Europe, Investors are increasingly looking at upside strategies involving both futures and options on the Eurostoxx 50 Dec-16 Dividend Future (DEDZ6) given the uncertainty surrounding Greece and an expected attractive Sharpe ratio in short-term maturities.