NaughtyPines

TWO EWY (S. KOREA ETF) TRADE IDEAS

AMEX:EWY   ISHARES INC MSCI SOUTH KOREA ETF
I haven't traded this particular instrument before. For obvious reasons, now seems like a perfect time.

The first of the two trades is a short strangle, with the shorts set up at the ~30 delta strike:

JUNE 16TH 60/65 SHORT STRANGLE

POP%: 59%
Max Profit: $140/contract
Max Loss: Undefined
Break Evens: 58.60/65.82
Theta: 3.01
Delta: .78

The second's a defined risk trade using the same strikes for the short options as used in the short strangle:

June 16th 57/60/65/68 Iron Condor

POP%: 52%
Max Profit: $93/contract
Max Loss/Buying Power Effect: $209/contract
Break Evens: 59.09/65.91
Theta: 1.19
Delta: -4.16

Notes: I would look to manage either of these at 50% max. I considered one additional setup: a Reverse Jade Lizard: June 16th 59/60/64, where the 59/60 is a short put vertical and the 64, a naked short call. This yields a setup with a 70% pop, a max profit of 1.14/contract, a break even at 65.14, and no downside risk (since the credit received for the short call is > the max loss of the short put vert).
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