Benzinga | Feb 14, 2021 07:21AM EST

Chris Verrone And Mike Khouw Point Out 2 Ways To Get A Piece Of Emerging Markets

Chris Verrone of Strategas Research Partners said on CNBC's "Options Action" that the setup in the emerging markets is very attractive for the beginning of a long term uptrend. He would play it through KraneShares CSI China Internet ETF (NYSE:KWEB). Verrone understands the emerging markets look overbought in the short-term, but he would be a buyer of any pullback in KWEB.

Mike Khouw said the only safe way to play these stocks is with options. He would buy the March $105/$115 call spread for a net debit of $2.60. The trade breaks even at $107.60 or 5.28% above the closing price on Friday. It can make a maximal profit of $7.40.