Morgan Stanley China A Share Fund Inc (CAF) Straddle

Trading a CAF straddle lets you take a pure volatility position on Morgan Stanley China A Share Fund Inc without committing to a direction. Morgan Stanley China A Share Fund Inc's straddle involves buying (or selling) a call and a put at the same strike and expiration, profiting when the stock moves more (or less) than the combined premium implies. Use our scanner to evaluate CAF straddle pricing in real time and find the moments when expected moves are mispriced.

A long straddle on CAF profits from large moves in either direction and is a classic play into binary events like earnings, product announcements, or macro releases. A short straddle profits when Morgan Stanley China A Share Fund Inc stays range-bound and implied volatility contracts. The breakeven points are simple: strike plus total premium on the upside, strike minus total premium on the downside. Comparing the CAF straddle price to historical realized moves helps you judge whether the market is overpaying or underpaying for volatility.

Morgan Stanley China A Share Fund, Inc. is a closed ended equity mutual fund launched and managed by Morgan Stanley Investment Management Inc. It is co-managed by Morgan Stanley Investment Management Company. The fund invests in the public equity markets of China. It seeks to invest in the stocks of companies operating across diversified sectors. The fund invests in the growth stocks of companies. It employs fundamental analysis with bottom-up stock picking approach to create its portfolio. The fund benchmarks the performance of its portfolio against the Morgan Stanley Capital International China A Share Index.

Morgan Stanley China A Share Fund, Inc. was formed on July 6, 2006 and is domiciled in the United States.

Earnings, product cycles, macro prints — any time volatility itself is the trade, the CAF straddle is the cleanest expression of that view. Our scanner prices every CAF straddle against historical realized moves, flags expirations where the market is overpaying or underpaying for vol, and ranks setups by breakeven width and IV rank. Whether you're long a CAF straddle into a catalyst or short a CAF straddle to harvest decay, the options straddle setups that matter are all in one place.