Trade Japanese Stock Options

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Trade Japanese Stock Options

An effective means of trading stocks in the current Japanese economic recovery may be to trade Japanese stock options. The economic policies of Japan’s current Prime Minister, Shinzo Abe, have led to a fall in the value of the Yen, a rise in exports of now-cheaper Japanese goods, increased consumer optimism and spending, and a boost to the Japanese stock market. Although the new economic day for Japan is less than a year old economists and stock traders have already come to expect rapid and steady expansion of the Japanese economy. Thus many were dismayed when the last reported quarter showed that Japan had only grown at just over 2.5%. There has been a lot of hand wringing and concern about the innate conservatism of many Japanese corporations. Consumer spending continued to rise as the average person in Japan thinks things are getting better. However, corporate capital spending went down by a tenth of a percent instead of rising as anticipated. Japanese stocks are expected to respond to what is seen by many as disappointing news. Such is the way of the stock market which immediately discounts either good or bad news. The question for the trader is if it is time to buy Japanese stocks or sell. At times of market uncertainty, options trading often the best route. A success options trading strategy could result in nice profits during the current uncertainty in Japan. Here are a few thoughts about how to trade stock options on Japanese stocks.

Trade Japanese Stock Options

The Tokyo Stock Exchange is home to well over 2000 stocks including well know international companies headquartered in Japan as well as mid-sized companies and startups. The Nikkei 225 is the most commonly quoted tracking index for this market. The TOPIX tracks Japanese blue chips and the J30 tracks a set of large industrial companies. Japanese stock options are available via the Tokyo Stock Exchange and include the likes of Nippon Steel and Somitomo Metal, TDK, Mitsui&Co, Shin-Etsu Chemical, Seven&I HD, KDDI, Softbank, Topix ETF, Nissan, Sony, Kansai Electric Power, and Nintendo.
Trade Japanese Stock Options via ADR’s

Shares of large Japanese companies can bought and sold on US markets using American Depository Receipts. Here is a representative list of possibilities.

• Nippon Telegraph
• iShares MSCI Japan
• Toyota Motor
• Sony Corporation
• Orix Corp Ads
• Advantest Corporation
• Kyocera Corporation
• PC
• KT Corporation
• MAKITA CP
• Konami Corporation
• Nidec Corporation
• HIT (Hitachi)
• KUB
• NTT (Nippon Telephone & Telegraph)
• Internet
• Mizuho Financial
• Canon Inc.
• Nomura Holdings
• Honda Motor Company
• Mitsubishi UFJ
• WACOAL HOLDINGS

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Trade Japanese Stock Options

  1. 1. Trade Japanese Stock Options By: www.Options-Trading-Education.com
  2. 2. An effective means of trading stocks in the current Japanese economic recovery may be to trade Japanese stock options. By: http://www.options-trading-education.com/14274/trade-japanese-stockoptions/
  3. 3. The economic policies of Japan’s current Prime Minister, Shinzo Abe, have led to a fall in the value of the Yen, a rise in exports of nowcheaper Japanese goods, increased consumer optimism and spending, and a boost to the Japanese stock market. By: http://www.options-trading-education.com/14274/trade-japanese-stockoptions/
  4. 4. Although the new economic day for Japan is less than a year old economists and stock traders have already come to expect rapid and steady expansion of the Japanese economy. By: http://www.options-trading-education.com/14274/trade-japanese-stockoptions/
  5. 5. Thus many were dismayed when the last reported quarter showed that Japan had only grown at just over 2.5%. By: http://www.options-trading-education.com/14274/trade-japanese-stockoptions/
  6. 6. There has been a lot of hand wringing and concern about the innate conservatism of many Japanese corporations. By: http://www.options-trading-education.com/14274/trade-japanese-stockoptions/
  7. 7. Consumer spending continued to rise as the average person in Japan thinks things are getting better. However, corporate capital spending went down by a tenth of a percent instead of rising as anticipated. By: http://www.options-trading-education.com/14274/trade-japanese-stockoptions/
  8. 8. Japanese stocks are expected to respond to what is seen by many as disappointing news. Such is the way of the stock market which immediately discounts either good or bad news. By: http://www.options-trading-education.com/14274/trade-japanese-stockoptions/
  9. 9. The question for the trader is if it is time to buy Japanese stocks or sell. At times of market uncertainty, options trading often the best route. By: http://www.options-trading-education.com/14274/trade-japanese-stockoptions/
  10. 10. A success options trading strategy could result in nice profits during the current uncertainty in Japan. Here are a few thoughts about how to trade stock options on Japanese stocks. By: http://www.options-trading-education.com/14274/trade-japanese-stockoptions/
  11. 11. Trade Japanese Stock Options By: http://www.options-trading-education.com/14274/trade-japanese-stockoptions/
  12. 12. The Tokyo Stock Exchange is home to well over 2000 stocks including well know international companies headquartered in Japan as well as mid-sized companies and startups. By: http://www.options-trading-education.com/14274/trade-japanese-stockoptions/
  13. 13. The Nikkei 225 is the most commonly quoted tracking index for this market. The TOPIX tracks Japanese blue chips and the J30 tracks a set of large industrial companies. By: http://www.options-trading-education.com/14274/trade-japanese-stockoptions/
  14. 14. Japanese stock options are available via the Tokyo Stock Exchange and include the likes of Nippon Steel and Somitomo Metal, TDK, Mitsui&Co, Shin-Etsu Chemical, Seven&I HD, KDDI, Softbank, Topix ETF, Nissan, Sony, Kansai Electric Power, and Nintendo. By: http://www.options-trading-education.com/14274/trade-japanese-stockoptions/
  15. 15. Trade Japanese Stock Options via ADR’s By: http://www.options-trading-education.com/14274/trade-japanese-stockoptions/
  16. 16. Shares of large Japanese companies can bought and sold on US markets using American Depository Receipts. Here is a representative list of possibilities. By: http://www.options-trading-education.com/14274/trade-japanese-stockoptions/
  17. 17. Nippon Telegraph iShares MSCI Japan Toyota Motor Sony Corporation Orix Corp Ads Advantest Corporation Kyocera Corporation PC KT Corporation MAKITA CP Konami Corporation By: http://www.options-trading-education.com/14274/trade-japanese-stockoptions/
  18. 18. Nidec Corporation HIT (Hitachi) KUB NTT (Nippon Telephone & Telegraph) Internet Mizuho Financial Canon Inc. Nomura Holdings Honda Motor Company Mitsubishi UFJ WACOAL HOLDINGS By: http://www.options-trading-education.com/14274/trade-japanese-stockoptions/
  19. 19. These can be traded directly or via the options route. Considering the current uncertainty in Japan it may be wise to trade Japanese stock options. As always buying puts or calls on a stock gives the trader the right to sell in the case of a put or buy in the case of a call in the underlying equity performs as anticipated. By: http://www.options-trading-education.com/14274/trade-japanese-stockoptions/
  20. 20. He is under no obligation to do so. And buying puts or calls provides the trader with leverage on his capital as he need never buy or sell the underlying equity but can simply exit the contract with a profit at the right time. By: http://www.options-trading-education.com/14274/trade-japanese-stockoptions/
  21. 21. When trading Japanese stock options it is always wise to do your own fundamental analysis and avoid trading if you are not clear on what the market is likely to do. By: http://www.options-trading-education.com/14274/trade-japanese-stockoptions/

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