NaughtyPines

EWZ MODEST PREMIUM SELLING PLAY

AMEX:EWZ   ISHARES MSCI BRAZIL CAPPED ETF
If you aren't playing or don't like to play earnings, premium selling plays are, well, "at a premium" and hard to come by.

EWZ             ( iShares MSCI Brazil Capped ETF             ), with an IVR             of 59 and an IV of 47, has resurfaced as a possibility.

Due to the price of the underlying, the best strategy is via short strangle and even that won't get you a whole lot, but it better than a poke in the eye with a sharp stick while you wait for volatility to resurface elsewhere in the market.

Example:

Dec 4th 20 Short Put/27 Short Call Short Strangle
POP: 74%
Max Profit: .60/contract
Buying Power Effect: Undefined Risk
Break Evens: 19.40/27.60

As with iron condors, look to take it off for 50% max profit.
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