back

closed Positions

ewz: 05.28.20 – 09.18.20

ETF | Brazilian Equities | Status: Closed

Adjustment #3

View original trade
08.20.20
Today's adjustment is a very rare occurrence. I actually
my
to the September cycle where I already have a
established from my last adjustment. Since my last adjustment I was able to do for a $0.39 credit, by rolling this long put out for a $0.16 debit has allowed me to extend duration until September expiration for a net $0.23 credit. EWZ had a nice big down move this morning which gave me the opportunity to roll so cheaply.
I've been fighting this market since May, and patiently waiting for this position to become profitable. Today, it is actually at
so I still have a chance to turn a profit. If EWZ continues to move down, I may close for profit or look into some other adjustments I can make to enhance my profit potential. If it rallies higher from here, I'll consider rolling out my short put to October to collect more credit to reduce my
I so rarely get the opportunity to defend
so this has become a great example of how it can be done under the right circumstances.
As it stands, the most I can lose is $3.50, and the most I can make is $2.50. If the share price lands exactly where it currently is at $28.90 on
I will make $0.60. I have around a 58% probability of at least breaking even. I have around a 20% chance of max profit, and around a 12% chance of maximum loss (based on the
values of my

Risk Profile:

Figure 4

Strategy: Roll Out Long Put

stc 1 aug 21 33 put
bto 1 sep 18 33 put
Fill Price: $0.16 debit

Position Analysis

U/L Price: $28.90
IV: 44.7%
IVR: 19.9
Liquidity: 4/4
Position: SEP 18 27/33 Long Put Vertical
POP: 58%
Cost Basis: $3.50
Risk: Defined
BPR: $350
Max Profit: $2.50
Max Loss: $3.50
Target P/L: $1.15
Break Even(s): $29.50
Extrinsic Value: $60.00
Net Delta: -60.69
Net Theta: 1.155

back

closed Positions
Open a Tastyworks Brokerage Account