The Turkish ETF – TUR has been beaten down lately, dropping over 32% in the last couple of months amid rising rates and a falling currency.

According to Market Watch:

“On Wednesday, the Central Bank of the Republic Turkey raised its late liquidity window lending rate by 300 basis points on Wednesday, in a surprise move that put a halt to the lira selloff — at least for now. The lending rate now sits at 16.5%, compared with 13.5% before.

The central bank has been operating in a peculiar environment given that Turkey’s inflation has been hitting double digits and its currency keeps sliding to historic lows. Moreover, the government of President Recep Tayyip Erdogan has been critical of the central bank, calling for lower interest rates.”

There’s certainly a lot of risk with investing in Turkey at the best of times and even more so when there is turmoil such as this.

But for investors willing to take a contrarian bet and buy “when there is blood in the streets” as Warren Buffet says this trade presents an attractive proposition.

It’s called a poor man’s covered call and is a cheaper way to trade a covered call without having to risk buying 100 shares.

For example, buying 100 shares to trade one covered call would set a trader back around $3,100. But this poor man’s covered call can be opened with on $645 and has a $350 profit potential.

$645 is the most the trader can lose even if the ETF goes to zero. Another plus is that because of the high implied volatility, the breakeven on the downside is over 5% below the current price.

It takes a brave trader to place a trade like this, but it could pay nicely if TUR recovers.