Last week I closed my IWM trades for a nice profit, and since IWM is part of my always on trades, and we got a nice move this week with a spike in volatility I am reloading on this one. IWM Strangle @30 delta IV Rank of 29.6 May 19 129 Put May 19 138 Call $3.68 credit Break evens 141.68 and 125.32 57% probability of profit we will look to close it earlier at...
With a six-month implied volatility percentile of 76 and a background implied volatility of 37, throwing a touch of "Brazilian" on here ... . Metrics: Max Profit: $247/contract Max Loss: $253/contract Break Evens: 34.53/39.47 Theta: 1.77 Delta: -.29 Notes: Will look to manage this at 25% max ... .
With IV rank at over 46 on FXE, the expected move in 46 days is +/- 2.61 (Prices at 106.01-100.79). If I sell a Big lizard, my break even on the downside would be just below the expected move and we don't have risk to the upside (In case it wants to pull back to the 200 EMA). Sold the 103 Straddle with upside protection buying the 105 call with 46 days to...
With equities still rallying I can redeploy another trade on the Q's. If it continues to go higher it will get to our max profit zone, if it starts to drop we don't have any risk and still make money. Worst case scenario is that we continue this nonstop rally without mercy then we would be basically short from 136.50 which would be at the all times high. The...
Similar to the FXE trade we can make another at the money ratio spread on TLT. With a 71.8% chance of profit. We make money as long as we stay above 115.60 in the next 44 days.
FB - along with the rest of the market - felt a nice dip this morning. Could be an opportunity to call at $140 with a modest time horizon.
We are at the lows and this trade is a neutral to bullish strategy. By selling the 18/19 Credit spread we make money if VXX continues to go down, however by selling the At the money Put we collect enough premium so that we have no risk to the upside in case volatility decides to explode. To be more efficient with my capital I am also buying the 13 Put...
potential options squeeze before earnings
I had a beautiful explanation written here and it was lost. It was about considering how to make income in a stagnant market. Become a seller and write options. This shows a previous strategy that could have been used in the last few days to generate income on your portfolio with a butterfly or iron condor. A future chart will describe this technique in depth....
This is a VIX futures "Term Structure" trade (see Post Below) ... . It's farther out than I like to go, but I only have one other VIX setup on -- a May 16/19 short call vertical. You can either consult the June VIX futures price and look to set up your short call using that price as a guide, or sell the spread with the short call at ~50 delta. Filled for a .75...
With the IV rank above 50 on FXE its a good time to sell premium. I could do a Strangle or Straddle, but since we are at an extreme and very far from the 200 EMA I don't want the risk to the upside. So I will be making a at the money Put ratio spread. Selling 2 of the 102 Puts to finance one of the 104 Puts. This way we have a 69.5% chance to make money at...
After the strong move up the last couple of days, I expect GLD to make a small correction. With an IV Rank at less than 1%, is not a good idea to try any of my favorite trades, so I am doing a double diagonal that would benefit in an increase in volatility (long Vega). I sold the 120/115 Strangle on the april expiration and bought the 121/114 Strangle on...
EWZ and the Emerging Markets ETF EEM have a strong correlation (Since EEM have 7.7% of brazil stocks). The correlation for the last year have been .92, and the last 30 days have drop to .40. Today we got a strong move on EWZ of -3.18% at the time of the trade and -.64% on EEM. By trading one to the upside and the other to the downside I will look to reduce...
Selling the 116 Straddle and buying the 118 Call for a total of $2.33 Credit. We have no risk to the upside and we are betting the Rate change is already priced in and if something strange happens and we get a move higher we don't have any risk to the upside. Our break even is at $113.67 That's 2.5% protection move to the downside. Last two times we had a rate...
... for a .03 db. At its outset, you short put is basically completely "financing" the cost of your long put (but for the $3 it cost to put the trade on). Your goal is to roll the short option forward for duration, collecting credits along the way and to exit the setup for a debit that is less than what you collected in credits (as you would do with any credit...
$FB facebook trying to break 139.98 to continue the bullish trend #fb #stocks #stock #options #option #ichimoku #stocktweets #facebook
The expected move is around $2.60 by doing a a synthetic spiked lizard with 2 ratio spreads we don't have risk to the upside and to the downside we have a buffer of over $3. Our break even is just below the $55 mark, and we have a max profit of $220. I will look to close it out tomorrow. Probability of profit is around 79%, but since this is an earnings play,...
... for a 2.23 credit. (Earnings volatility contraction play). Metrics: Probability of Profit: Coin Flip Max Profit: $223/contract Max Loss/Buying Power Effect: $177/contract Break Evens: 56.27/61.23 Notes: I filled this at open, but price has moved down somewhat, so you may want to adjust the setup by a half strike or so. In any event, this thing's so...