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closed Positions

ewz: 02.24.20 – 05.12.20

ETF | Brazilian Equities | Status: Closed

Adjustment #8

View original trade
04.03.20
EWZ is back down with the rest of the market today. I need it to go up but the nice thing is that, due to
I've actually made some good money back so far. Still, with the price back down below $22 my
risk is getting a little larger than I'd like at about 47. Normally I wait until 50Δ is breached, which would mean my position would theoretically move at the rate of about 50
The
in my original
is so low, however, that it no longer offers any benefit. Instead of keeping that risk on for no pay, I'm
a couple
to pick up a little more
and reduce my directional risk. This way, if EWZ continues to fall, I will lose at a slower rate. If it rallies back up, I should make money through
and, hopefully, volatility contraction. This adjustment also improves my best case scenario by another $0.43.

Risk Profile:

Figure 9

Strategy: Roll Down Call

btc 1 may 15 29 call
sto 1 may 15 26 call
Fill Price: $0.43 credit

Position Analysis

U/L Price: $21.65
IV: 86.1%
IVR: 50.1
Liquidity: 4/4
Position: Short MAY 15 23/26 Strangle
POP: 0%
Cost Basis: -$4.09
Risk: Undefined
BPR: $435
Max Profit: -$4.09
Max Loss: Unlimited
Extrinsic Value: $227.00
Net Delta: 30.12
Net Theta: 4.290

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