Trade!

Buy 1% position EWA Jan11 16 puts @ 0.65.

This is how I've decided to play the China bounce today. I was itching to buy the FXI puts, but they are much more expensive. The IV on FXI is 40+, compared to 32 for EWA.

Today's rally has insanely low volume, and I can't help thinking that GS and the big boys are disappointed with their attempts to get more people into the water with their bullish sales story on China, complete with ridiculous Yuan appreciation targets.

Nouriel Roubini, on the other hand, says the yuan is more likely to fall versus the dollar than rise if the euro keeps falling.

I am tempted to put in a big position in EDZ later today, and will update if I pull the trigger.