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closed Positions

fxi: 01.24.20 – 04.16.20

ETF | Chinese Equities | Status: Closed

Closing Trade

View original trade
04.16.20
The time has come to close out this FXI position. I've managed to recover most of my losses on this trade. At its worst, this trade was losing more than $3! With good management and patience, I've managed to get out of it for a $0.69 loss instead. I decided to close it today because the
has declined so much that there is less than $1 of
left to make on the trade.
has dropped to a lowly 23.8 and my
is not that far from the current share price. Rather than hold the risk for a low potential payout, I'm going to close it and free up the
for a different trade with higher
and greater profit potential.
I hate losing but, to put this loss into perspective, I've included a comparison to 100
in the risk profile below. As you can see, had I simply bought 100 shares when I first established an FXI position, I'd currently be at a $4.56 loss – even after the incredible rally this market's had. That's worse than my lowest
throughout the entire life of the position! This is the power probability-based option strategies can give us. We are always at risk of loss whether we are option strategists or
With options, however, we can give ourselves a chance to defend and soften the blow. We can rely far less on market direction to turn a profit or recover from market turmoil. Pretty cool!

Risk Profile:

Figure 7

Strategy: Close Position

btc 1 may 15 34 put
btc 1 may 15 39 call
Fill Price: $0.95 debit

Position Analysis

U/L Price: $37.60
IV: 32.0%
IVR: 23.8
Liquidity: 4/4
Final P/L: $0.69 Loss

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