Select Emerging Market ETFs (U.S. listed in $USD) falling since Jan 2021, not like the IXIC (Nasdaq Composite Index) only since mid Feb: Russia RSX, Brazil EWZ, Mexico EWW, South Korea EWY, Thailand THD, New Zealand (ENZL - small market, not emerging market).
... for a 2.44/contract credit.
Notes: With price trading in between the 32 and 33 strikes, went skinny short strangle in lieu of short straddle. Since it's almost a straddle, I'll look to take profit at 25% max.
I've gone ahead and shown defined risk wings for an iron fly/skinny iron condor setup on the chart -- the September 18th 28/32/33/37, which was paying...
... for a 2.17 credit.
Notes: Relatively high rank/implied for an exchange-traded fund at 40/38. This isn't quite a Big Jade Lizard, which usually consists of an at-the-money short straddle with a long call, but it's trading between the strikes, so opened it up to a skinny at 32/33. No upside risk, since the total credit receives exceeds the width of the short...
Next week's earnings announcements are light, with options liquid underlying to play for volatility contract even lighter.
BBBY (52/119/18.8%*) announces on Wednesday after market close, so look to put on a play before the end of Wednesday's session. Pictured here is a July 17th (12 days) 11 short straddle, paying 2.03 as of Friday close, 18.8% of...
A lot of foreign ETFs have yet to recover because of currency trade (EWW, EWZ, TUR, etc), when the currency bounces back, you'll see huge moves in those ETFs. Might be a better opportunity than trying to chase after US equities.
I've always been more fond of trading foreign ETF options than US index ETF options, I find the returns better on both...
There are a ton of earnings coming out next week, with the most options liquid plays to be had in AMD (44/71), TWTR (77/80), and FB (59/50).
Pictured here is a delta neutral short strangle in AMD in the June cycle (54 days). Camped out around the 20 delta strikes, it paid 3.12 as of Friday close (5.6% as a function of share price) with break evens at...
Looks to me like it's gotta break out sooner or later, one of few world indices not to bounce (mainly because of oil prices). Dipped into some calls Friday, but we may have to wait another week before it breaks out... we'll see.
If oil goes up, so will Mexico and Brazil (EWZ) for sure.
Got into this this morning after the Trump news, chart pattern looks good for a breakout (along with a bunch of other stocks).
EWW has low options premium and good liquidity, you guys know this isn't the first time I've played with this. I get better returns than playing with SPY, DIA, or IWM options.
... for a .57/contract credit.
Notes: One of the ex. U.S./Canada exchange-traded funds I looked at over the weekend with a yield that exceeds both TLT and U.S. broad market. Selling the 20 delta or so here, looking to acquire at a discount over where the underlying is currently trading. Cost basis of 38.43 if assigned; otherwise, I keep the premium ... .
It shouldn't come as a massive shocker to anyone that the U.S. market has been and has gotten even more expensive. For an investor that is just starting out, it is enormously frustrating, since virtually everything is at the top of a very long term trajectory with the broad market yet again knocking at the door of all-time-highs.
Here are a few acquisition ideas...
Looks to me like it's headed towards another bottom. No reason why it should go up anyways, their whole country was downgraded last week.
If Feds don't cut rates, this will tank on the currency exchange alone.
Mexico is relatively cheap compared to other emerging market stock exchanges. In addition, I agree with several analysts that Mexico could be the winner of the trade war between USA and China.
My investment strategy indicated a buy signal for EWW on May 21, with a target price of ~48 USD/share (expected profit of ~7.5%).