“This is very similar to the U.S. election in 2016,” Danilo Kawasaki, chief operating officer at Gerber Kawasaki, told CNBC. “You had a far-right candidate come out of nowhere and win.”
Bolsonaro is seen as a market friendly contender due to his favorable economic platform. The presidential candidate wants the Brazilian central bank to be more independent and to privatize state-run companies. He has also pledged to take a tough stance against corruption.
“Elsewhere, it looks like new traders may be purchasing new positions at the October 39.50 call for a volume-weighted average price of $0.95. If this is the case, breakeven for the call buyers at the close next Friday, Oct. 19 — ahead of Brazil’s Oct. 28 runoff election — is $40.45 (strike plus premium paid),” according to Schaeffer’s.
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