Foreign investors ramp up Brazil election bets via iShares MSCI Brazil ETF calls amid tightening race.

Foreign investors are increasingly betting on Brazil's upcoming presidential election by buying call options on the iShares MSCI Brazil ETF (EWZ). This surge in call activity reflects expectations of a political shift, especially as the race tightens and prediction markets favor Flávio Bolsonaro more than before. The 2018 election showed that EWZ prices can adjust well ahead of the final vote when markets anticipate regime changes. These call trades offer potential upside with limited risk, signaling growing investor interest in Brazil's political landscape and its impact on equities.