NaughtyPines

OPENING: FXE JAN 27TH 97/101/101/105 IRON FLY

AMEX:FXE   INVESCO CCY SHS EURO TR EURO SHS ETF
... for a 2.25 credit.

Although general background IV in FXE isn't high here (it rarely is, comparatively speaking), it's high relative to where it's been in the last six months.

Metrics:

Max Profit: $225
Max Loss/Buying Power Effect: $175
BE's at 98.75/103.25

Notes: Will look to manage at 25% max profit. Just trying to keep the theta coming in here with what limited high IVR choices I have available to me.
Comment: I will need price to move back toward the body of the setup in the remaining time I've got with this in order to exit profitably. Currently, the long put is "no bid," and the short put is worth .14. I'll look to pull off the short put at near worthless running into expiry, and then roll out the short call side, allowing the long put to expire worthless.
Comment: Covering the 101 short put for a .05 debit and rolling the 101/105 short call vert out to the Feb 17th 101/107 for a .19 cr. The 97 long put remains no bid, so I'll allow it to expire worthless. I looked at replacing the short put vert here (e.g., a 95/101 short put vert), but I can't get very much for that, so will just work the short call side for now. The scratch point is currently 2.25 -.05 + .19 = 2.39 (excluding fees/comms), so I'll look at closing the setup around that point if I get the down move I need ... .
Trade closed: target reached: Covering today for a 2.24 db, turning a loser into a scratch ... . And with just 7 DTE to spare. The 107 long call is no bid, so I'll just let that expire worthless in the absence of some humungous pop ... .
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