... for a 1.04/contract credit.
With implied volatility fairly low across the board, going small, defined in the exchange-traded fund with the highest background implied volatility on the board (30.9%) to keep powder dry for something sexier to come along ... . Shorts nearest the 25 delta strike, longs nearest the 10 with slightly more than one-third the width...
Economic reform isn't going as well as hoped, the Brazilian bubble is popping. Note that their market hit ATH, it looks like a double top due to currency exchange rates.
EWW whipsawed on it's way down last summer, expecting the same here. Short any pops up, watch both iBov and USD/BRL exchange rates.
Trade of the Week (May Cycle):
Pictured here is an EWZ (29/34) May 17th 37/45 short strangle: 1.14 credit, .57 at 50% max, break evens at 35.86/46.14, delta -1.46, theta 2.87.
Obvious Alternatives: EWZ May 17th 41 short straddle, 3.91 credit, .98 at 25% max, break evens at 37.09/44.91, delta -4.6, theta 4.01.
Notes: Pros: High implied, high implied relative to...
Bastante claro el gráfico de este fondo compuesto por acciones de Brasil, el achique que veníamos observando frenó en principio al hacer contacto desde arriba contra la línea tendencial bajista de largo plazo que supo romper a principios de enero..
Ahora, en la medida que el fondo cotizante ya no vuelva debajo de 41 dólares debería continuar su marcha alcista a...
Scenario 1: Scenario 1 would be S-H-S tacking into account the real movement which will probably go to 3.90/3.95 y n short run and if there's no agreement between US-China it will hav further pressure and will go to circa 4.20 again in order to complete a new S-H-S in the long cycle. After that will follow a commodities super cycle.
Scenario 2: Scenario 2 will...
Last July I put out a video suggesting that Brazil was a great opportunity to allocate capital (linked below). At the time the business cycle had turned from contraction to expansion and from a technical standpoint, we were sitting on support.
Today, +48.6% higher the risk is rising, the cycle is still relatively strong but our technicals are suggesting we...
Always looking for high gain plays, especially since I'm convinced the market is going to melt up for 2 more weeks.
Looks to me like EWZ has one more leg for the double top. This is not currency hedged so the dollar weakness helps as well. Into some Jan 25 calls with my GM profits.
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...
EWZ is a derivative of the Brazilian stock market ( IBOV ) and the USD/BRL relationship. There is a clear head and shoulders pattern developing in the Brazilian Real. The drop in the Real should provide a tailwind for Brazilian stocks. On top of that, the IBOV just broke out above 90,000. I see continued upside in EWZ and BRZU as a result. This can be seen in the...