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closed Positions

eem: 01.27.20 – 02.20.20

ETF | Emerging Markets | Status: Closed

Opening Trade

01.27.20
We've got a nice little pop in
today! It's been so long I can hardly believe my eyes.
are up over 7% and have breached the 17 threshold. Since it's been months since the last spike, and we are still at crazy heights in the market, I'm going to start small and scale into chaos if it continues.
EEM, the emerging markets
is highly liquid, low price, and has a nice
of 47. I've
a March
using the 26-30
to take advantage of this volatility spike, and collected $1.07 of
The position should benefit if volatility contracts and through the passage of time. If volatility continues to expand, this position will probably get hurt, but that should carve a path to more opportunity in other underlyings! I'll be targeting $0.53 profit which is 50% of the maximum potential.

Risk Profile:

(Not to scale)
Figure 1

Strategy: Short MAR 20 41/45 Strangle

sto 1 mar 20 41 put
sto 1 mar 20 45 call
Fill Price: $1.07 credit

Position Analysis

U/L Price: $43.16
IV: 19.5%
IVR: 47.0
Liquidity: 4/4
Position: Short MAR 20 41/45 Strangle
POP: 66%
Cost Basis: $1.07
Risk: Undefined
BPR: $690
Max Profit: $1.07
Max Loss: Unlimited
Target P/L: $0.53
Break Even(s): $39.93, $46.07
Extrinsic Value: $107.00
Net Delta: -2.24
Net Theta: 2.015

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