Trading EWZ with options.
Calenders and Verticals in specific.
looking for a retrace so im open ended on the position to the down side.
Im long term Bullish.
Short term Bearish.
Also note, if retracement actually matures, it will leave a bearish formation producing resistance levels.
The market will have to fight back a little harder to bring back the current...
... for a .36/contract debit.
Ordinarily, calendars in VIX or VIX derivatives just plain don't work. This is due to a variety of reasons, not the least of which you're just plain paying too much in extrinsic value in the long-dated option.
Additionally, the standard calendar is usually set up on the call side of things in anticipation of call side movement and...
IV rank a little high on this
max risk is the debit until the front month expiration
Underlying price when opened 173.20
Upper and Lower expected move 167.70 176.90
break evens 167 and 180 gives a little more room above
With the break even points being clearly outside of the expected move (per...
Been meaning to try one of these . .
Debit 2.46 ($246.00)
IV 10 IVR 12%
Break-Even / Scratch 266.60 and 253.20 (13.40 profit range)
SPY spot 259.97 Will set this to close at 10% -$25/contract (this is one)
- If SPY sits as still as it has today will let it go to more profit Shorts are...
Double Calendar spread actually a tiny bet on little movement of SPY before Friday
Will take the short legs off with any sign of price jumping or within 2 days. A big price jump without the short legs could improve the profit so will be watching this closely and out by Friday.
This time leverage can be powerful, that 14 Theta is...
This trade started out as a same strike calendar with the back month at the 40 delta strike and the front month at the same strike (see Post Below). As price has moved and I've rolled aspects of the setup, it has now morphed into a diagonal, with a roll today from the October 13th 138 short put to the October 27th 138 short put for a realized gain and a .26...
... for a 2.47 db (low implied volatility rank/low implied volatility).
Buying Power Effect: $247/contract
Notes: Will look to take profit at 20% max/roll sides as price dictates.
Putting on some more low volatility strategy stuff in this low volatility market ... .
There aren't many metrics to look at:
Buying Power Effect: 3.55 db
As with the IWM put calendar (see Post below), will work both ends of the candle, rolling the long away profitably, rolling the short away/out profitably while keeping the width of any...
... for a 2.71 db.
I don't have any IWM on, and we're in a low volatility market, and calendars are a low volatility strategy, so putting one on here ... . The back month is setup around the 40 delta; the front at the same strike as the back.
Unfortunately, as with all calendars and diagonals, they're aren't a good deal of metrics to look at. Here's what we do...
Truth be told, I'm not a big fan of low vol strategies such as calendars and diagonals, but am going to putz with one here.
From a trade management standpoint, the notion is to take off the short call at or near worthless or roll it to the Jan expiry for additional credit, resulting in a Jan 20th 136.5/140 short call vertical. You then manage the setup as you...
Volatility in the broader indices has been on the ebb all week. What does this mean for premium selling? Well, it means that the premium in index ETF's like SPY, IWM, QQQ, and DIA is less rich and therefore not as attractive for selling premium. Ordinarily, when this occurs, I turn my attention somewhat away from broad market index ETF plays or plays in...
AUDUSD confirming another test of its downtrend on weekly basis, by bouncing of lower 1st standard deviation from weekly (120-h) mean.
Expanding volatility (marked by 3.2 standard deviations from weekly mean) is confirming the risk of further delcine.
Traders can take short off the lower 1st standard deviation (at 0.6940) and stop at the weekly mean (at...
After a sharp up move earlier this week EURUSD has retraced its gains significantly.
However it did not yet enter a downtrend on weekly basis - price is returning to its 1st standard deviation from weekly (120-h) mean amid compressing volatility (marked by 3.2 st deviations from the mean)
Thus the price is likely to revert up to the weekly mean within a day or...