Calling Bullshit on North Korea By Buying EWY Calls

Totalitarian holdout North Korea attempted to scare its oppressed people into further submission by testing nukes. The South Korean stock market reacted accordingly:

May 27 (Bloomberg) -- South Korea’s won dropped 0.2 percent to 1,265.45 per dollar after North Korea threatened military action in response to the Seoul-based government joining a program to seize weapons shipments.

The benchmark Kospi stock index dropped 0.7 percent to 1,363.54.

Of course, this happened on a day when Japan climbed ~1+% and the Hang Seng rocketed up 4+%.

So I picked up some June EWY $35 calls a bit prematurely for $1.30. My annotated chart below projects a price target of at least $38 by June options expiration. This assumes that EWY will continue on its trendline prior to this nuclear threat hiccup.