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fxi: 01.24.20 – 04.16.20

ETF | Chinese Equities | Status: Closed

Adjustment #4

View original trade
03.16.20
Once again, I'm
my
to lower my
which reduces directional risk on this trade. The goal is to keep the rate of loss manageable so I don't have to close my positions for an overblown prices.
is very high in all of my positions due to extremely high
You can see it in the risk profile below... It is represented by the distance between the curved black dotted line and the solid black line.
I have the potential to make all of that extrinsic value back once IV tops out and starts to decline. I've taken some hard hits, but take comfort in knowing that it is not as bad as it appears at the surface. A little patience and aggressive management is going to help me recover once the panic in the market quiets down. Prices could go back up or easily continue to drop, but once they start moving at a slower rate in either direction, I'll be in a good position to recover a great deal of my losses through volatility contraction.

Risk Profile:

Figure 5

Strategy: Roll Down Call

btc 1 apr 17 37 call
sto 1 apr 17 34 call
Fill Price: $1.52 credit

Position Analysis

U/L Price: $34.55
IV: 61.6%
IVR: 113.3
Liquidity: 4/4
Position: Short APR 17 34/40 Inverted Strangle
POP: 0%
Cost Basis: $5.26
Risk: Undefined
BPR: $700
Max Profit: -$0.74
Max Loss: Unlimited
Extrinsic Value: $258.00
Net Delta: 26.69
Net Theta: 5.390

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