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closed Positions
ewz: 05.28.20 – 09.18.20
ETF | Brazilian Equities | Status: Closed
Opening Trade
05.28.20
I can't even remember the last solid down move at this point. EWZ was $22.61 when I closed my last position. At the time this trade the price was $27.43... That $4.82 increase is over 21% in a matter of weeks! The general market has had a similar unstoppable rally as well. I could certainly be wrong, but EWZ (as well as the entire general market) feels extremely over-bought to me. Since I think we're due for a expansion, I think my typical is the wrong move here. Instead, I'm getting with a wide By selling 2 and buying one deep put, I've created a scenario where I can make money if EWZ price declines while capping my upside risk to $445. My max downside risk is $1940 (if EWZ drops to $0 by July) and my max profit potential is $455.
By selling puts that are closer to the share price than my I was able to collect rather than paying it, which creates positive and improves my Even though I want the share price to fall, it can actually rise to $28.55 before my is breached. My max loss is all the way out at the 9 , meaning I only have a 9% chance of a max loser to the upside – and that's only if I hold the position all the way until My downside break-even is $19.45. The odds of this position expiring below that point is currently less than 7% (based on the delta). The peak of my profit potential is at $24. I think I'd be happy with 25% of the max profit potential on this one, but I'll sort of play it by ear. Regardless of what happens, I plan to adjust or close as we near 21 days until expiration. That way, if it's a loser, its highly unlikely that it would be a max loser. If it's a slight winner I'll either take my profit and look for something else, or see if there's a way to
Risk Profile:
Strategy: Buy JUL 17 24/33 Put Ratio
sto 2 jul 17 24 put
bto 1 jul 17 33 put
Fill Price: $4.45 debit
Position Analysis
U/L Price: $27.43
IV: 50.1%
IVR: 33.2
Liquidity: 4/4
Position: JUL 17 24/33 Put Ratio
POP: 58%
Cost Basis: $4.45
Risk: Defined
BPR: $770
Max Profit: $4.55
Max Loss: $19.55
Target P/L: $1.15
Break Even(s): $19.55 $28.55
Extrinsic Value: $112.00
Net Delta: -35.10
Net Theta: 1.938