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closed Positions

eem: 02.27.20 – 03.30.20

ETF | Emerging Markets | Status: Closed

Opening Trade

02.27.20
The market's been getting wrecked the past week or so, and
is, by far, the highest it's been in a long time. I still have some capital I'd like to put to use, so I decided to sell another
in EEM, the emerging market
. This is a low-priced product which doesn't require a lot of buying power which is great for my small account size. If volatility continues to expand, I'll still have some cash left to use, but it's getting to the point where I'll need to be a bit more selective and consider
I collected $1.29 for this position and my profit target is about 50% of that. Hopefully the chaos will settle down soon and give me a chance to profit off of the
I've been selling. There's no way to predict what will happen, however, so if worst comes to worst at least strangles offer strong defensive tactics.

Risk Profile:

Figure 1

Strategy: Short APR 17 38.5/43.5 Strangle

sto 1 apr 17 38.5 put
sto 1 apr 17 43.5 call
Fill Price: $1.29 credit

Position Analysis

U/L Price: $41.10
IV: 27.5%
IVR: 115.7
Liquidity: 4/4
Position: Short APR 17 38.5/43.5 Strangle
POP: 64%
Cost Basis: $1.29
Risk: Undefined
BPR: $590
Max Profit: $1.29
Max Loss: Unlimited
Target P/L: $0.64
Break Even(s): $37.21, $44.79
Extrinsic Value: $129.00
Net Delta: -1.98
Net Theta: 2.542

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