Russian stocks have staged a comeback over the last three sessions, as concerns about the situation in Ukraine, and about the consequent sanctions, have lessened. But while investment experts say that getting in on the Russian market could be a good move, they say that reducing risk is a must.
"I like making a bullish bet here, because this is one of those situations where you actually do have really cheap stocks because everybody's so panicked," said Michael Khouw, primary strategist at Dash Financial.
He advises buying a call option, which gives its owner the right (but not the obligation) to buy a stock at a given price in a given time frame, on the Market Vector Russia ETF (ticker symbol: RSX).
"Getting an option gives you a little bit of leverage without actually taking the risk of going out and buying it," Khouw pointed out on Friday's "Options Action."
Stacey Gilbert, senior options trader for Susquehanna, agrees.
"If you're interested in getting long Russia, if you think that there is potentially a rebound here, one of the things I would consider is, I would consider options," Gilbert said. "There are so many different moving parts right now in Russia, between the various sanctions, just the geopolitical issues—I'm much more comfortable using options."
While the Russia ETF has now risen more than 4 percent in three sessions, it's still down 10 percent in a month.