Despite the China’s Central Bank cutting Requirement Reserve Ratio (RRR) along with the amount banks are required to hold in reserves, China’s Shenzhen dropped 5.78% to 13,588.27.

14_CHINAMThe ChiNext Index dropped even harder to 2,689.68 or 7.90%. The ChiNext is a tech heavy index similar to the U.S. NASDAQ 100 Index.

I’m using the drop to being looking at strong China tech names such BABA (quote), BIDU (quote) and YOKU (quote).

I want to be flexible and define may risk by using options as either a proxy or protection in names I already have positions in.



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