If you've been paying attention to headlines about Brazil recently, the term "impeachment" seems to be all over the place. But what's really driving prices upwards in the country's stock market? Is it the daily swaying impeachment probability or something else? Today's instrument to be analysed is EWZ, the ETF that seeks to track the investment results of the...
I already have a couple EWZ premium selling setups on, but with an implied volatility rank of 95 and implied volatility of 59, I'm going to put some more on here. I'm going small and using multiple expirations for setups to disperse my risk, while taking advantage of this fairly low priced underlying to haul in some pretty good credit. Here's the...
Another week of wasteland for premium selling, with EWZ again topping the volatility charts for non earnings plays, although I may go small with an IWM setup in the May monthly (it's the most volatile amongst the index ETF's, which ain't saying much). I've got one more short-term RUT/IUX setup on that I will need to address, but other than that, it's going to be...
This rolled out, "goofy" setup (it basically morphed into a long strangled inverted short strangle upon rolling) has moved into profit, so -- like the LULU short strangle (i.e., broken and rolled) -- I'll look to take it off at NY open for a small profit, so that I can redeploy the buying power elsewhere in a higher probability setup ... . I'll post the trade...
Closing out the short put side of my iron fly for a .10 ($10), as it's basically nearing worthless, and I'd like to clean up this broken setup here if I can. This left me with the 22/25.5 short call side of the setup to deal with, which I rolled out to the April 23rd expiry 22.5/27 strikes for a .26 ($26) credit. If I'm going to attempt to improve strikes, I do...
With the short put side of my EWZ iron fly nearing worthless (<.10/<$10), I'll be looking to close that out tomorrow (I neglected to notice it today, my usual "housekeeping" day where I clean up trades). Although the short call side at 22/25.5 still has 18 DTE to "work out," I think that is unlikely, so I'll look at rolling that side out for duration a modest...
Here's what I'm looking at for next week: VIX/VIX PRODUCTS . VIX finished last week at 16.50. I will look at VIX/VIX product setups early next week depending how the "horse does at the gate" (Monday). If we see a tight range in the S&P like we did pre-Draghi in prepation for FOMC, VIX could drift go a little lower Monday through Wednesday, in which case I will...
With the VIX finishing the week out at 16.66, next week is setting itself up to be a less than sexy week for premium selling, particularly in broader market instruments like SPY, IWM, QQQ, and DIA. Moving to other sectors, the Brazil ETF, EWZ continues to be hot premium selling wise, with an implied volatility rank of 72. A couple of issues in the oil and gas...
In bull market in ONE week. (open price: 20.60, close price: 24.99, 21.3% gain). Weekly technical is in sweet spot and I think it has a lot potential. Waiting for some pullback and consolidation and a better entry.
With volatility ebbing out of the broader markets and earnings season, for all practical purposes, over, I'm looking to put on some small, defined risk, premium selling plays in April while the remainder of my March setups work themselves out. With an implied volatility rank at 60 and an implied volatility of 48, EWZ isn't the greatest play in the world for...
Okay, so there isn't a 1.00 worth of credit in this setup, but I'm going to put it on anyways due to its high IVR/high IV (79/52). EWZ Jan 29 18.5/26 short strangle POP%: 70% Max Profit: $82/contract BPE: ~$235 BE's: 17.68/26.82
Did very well since September bottom... After higher lows, it is trying to make a higher high. Once confirmed, I think next target is $29 level
With volatility having bled mightily out of the broader market, earnings plays is where the premium selling game is at, so that is what I'm focusing my attention on this week. With earnings plays, I'm looking at doing either iron condors or short strangles (buying power permitting) for underlyings with an IVR above 70 and high IV (50+). To a certain extent,...
The top IVR (52-week ToS) non-individual underlyings (i.e., ETF's) aren't all that great again this week, but you'll notice some familiar names popping up yet again, primarily due to jumpiness in the precious metals and oil markets: XBI (SPDR S&P Biotech ETF): IVR 52/IV 50 (Generally, Poor Options Liquidity) EWZ: (See Linked-To Post Below) XOP (SPDR S&P Oil & Gas...
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...
EWZ had a good week. It yet to hit the red resistance line ($27 level), so I speculate the rise can continue for several days. We will see how it responds to the resistance and act accordingly, if ever hit.
Brazil was hit so hard and things are so bad, and .... it might be time to buy? I do not know. Technically, it appears to be forming a green support line (might be a fake one though). RSI is forming a support line too. But it is enticing... even touching the solid red resistance will give you ~ 10% gain, and a breakout to the blue resistance line will give you...