$iShares MSCI South Korea ETF(EWY)$ $Direxion Daily MSCI South Korea Bull 3x Shares(KORU)$ KOSPI has spent the last 3.5 months mostly trading in a consolidation zone between 6185 and 7227. The 5631 to 6185 range has been an oversold area where buyers stepped back in, and quick drops below 5631 turned out to be the best discounted entries.
Right now KOSPI is trading at a severely discounted 10.x PE versus the traditional 19.x, and 25x for the S&P 500. I expect KOSPI to at least recover roughly 30% back to the 7237 level over a 3 to 12 month window.
Nasdaq futures pulled back 5.7% from ATH over the past 8 days. As long as that stays within the 10% pullback range, the max downside for KOSPI should be in the 5000+ area.
With that in mind, I adjusted my gradual KORU call accumulation plan to 3-month Jan/2027 $8 to $10 calls, 5-month Mar/2027 $10 to $12 calls, 8-month Jun/2027 $14 to $16 calls, and 14-month Jan/2028 $18 to $20 calls.
The bid/ask spread is still wide and open interest is moderate, so I have not gotten any fills yet. I will adjust the target strikes up or down as needed.
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