Gain on Short Term Upside in India

Narendra Modi will be the new Prime Minister in India, and he is viewed as a globally friendly leader as it related to opening India up to foreign investment and capital flows in a country that has had high regulation related to investments within the country.  The India stock market (Sensex) is at 52 week highs, and we expect the bullishness to continue in the near term.  

As a short term trade we are buying Sept $50 Calls on ICICI Bank (IBN) for $3.80, and selling the Sept $50 Puts for $3.95, for a net credit ot $0.15 cents.  If the price drops below $46.05 by Sept expiration, we will take ownership of the stock.

IBN trades at a respectable PE of under 15, and should continue to see growth under the new leadership in India, and expected reforms to combat corruption and expand India's growth and stature on a world stage.