Chinese Banks, HSCEI Call Strategy Eyed

Investors should consider buying Chinese banks and the HSCEI via an April 2014 105% call at 1.9%, a June 2014 105-115% call and hedging the downside via a volatility spread. The volatility spread should be executed by buying a June 2016 80% put on the HSCEI at 7.79% and selling a June 2016 80% put on the S&P 500 at 4.22%, according to strategists at BNP Paribas.