According to Michael Khouw of Optimize Advisors, the iShares China Large-Cap ETF (FXI) could be a good choice for investors who are optimistic about Beijing. “I think this is a risk-reducing way to bet on the upside if you want to go in that direction,” he said Tuesday on CNBC’s “Fast Money.” US investors have become wary of Chinese-listed stocks, especially after Beijing’s regulatory crackdown on its tech giants. Indeed, US-based active money managers have been sitting on the sidelines when it comes to Chinese stocks, even as the likes of Baidu and Alibaba start operations in 2023. ETF at 1 .04 dollars on Tuesday. It is a bullish bet by that investor and suggests that he or she sees the exchange rate rise to 6% over the next few months. The fund ended Tuesday’s trading session down 0.44% to close at $29.27. A call option gives the buyer the right but not the obligation to buy a security at a specific price and on a certain date. The buyer of the option makes money when the asset rises in price. A call spread strategy is a bet that the asset’s price will rise within a specified range: The investor uses two call options, one with a lower strike price and one with a higher strike price, to create that scope. Khouw said there would be a quadruple return rate if FXI rallied around 19.5% before the June expiration. The ETF has gained 3.4% this year, which means it is less than the broader S&P 500’s 6.8% gain. It underperformed in 2022 with a 22.6% loss compared to a 19.4% drop for the overall index. Mount FXI .SPX YTD FXI vs S&P 500