IYR DRN real estate ETFobserving potential bullish butterfly? Can't say for sure.. Watching for more downside before a big run for 2018 and on. by gghsusa1
Neutral trade on IYR,58% probability (Strangle)The Implied Volatility Rank of IYR is at 65 and with a down move of around 6% in the last 20 days, I expect we are going to start a correction soon around the value area. So I decided to sell a Strangle to collect some premium. With 37 days to expiration I Sold the 80/76 Strangle for 0.95 credit. That will give me a 58% probability to make money, but if I close it when the price of the strangle reach 0.48 my probabilities jump to 80%, so that's the plan. The Trade: Expiration = Feb 16 Sell 80 Call Sell 76 Put Credit Received = $0.95 ea Probability of profit 58%by AlexanderGotayUpdated 229
IYR: Post Wave 5 Correction already started. Broken Double Bottom. Various Price Targets shown. Shortby Will_Wong220
Real estate ETF$IYR, $DRN looking for new bottom before continuation. Stay tuned for March! by gghsusa1
Thoughts of Real EstateHi guys. I don't own real estate being a headache as it is but I gladly look at the real estate index when it seems to hit some support. Cultivating politeness, love, and light brings us positive vibrations. Thank you friends. P.S. Confirmations matter (e.g. higher low and higher high). Longby UnknownUnicorn2141791Updated 0
Short IYRShort IYR. It has been trading in a channel for over a year now. It has hit its resistance line and has bounce back down. Shortby tyway112
THE SHORT PUT-ACQUIRE/KEEP PREMIUM-COVERED CALL CYCLEI have touched on this topic before in separate posts, but thought I'd refresh the notion of what I like to call "strategic acquisition" here, since I get repeatedly asked about how I go about acquiring shares in an underlying I actually really do want to buy and hold, usually for an indefinite period of time (we're talking years here). The focus of these acquisitions is not on growth (although that's sure always swell), but on the dividends owning the shares provide plus any premium I collect that reduces my cost basis. This may seem "radical" ("What?! You're not acquiring the shares for growth potential! Ridiculous!"), but the fact is that you cannot count on growth ad infinitum , and if you're going to bail on your dividend earning positions "intermittently" as they appear to run out of steam to the upside, then the whole purpose for owning the shares in the first place -- dividends plus cost basis reducing short call premium -- is somewhat out the window. All that being said, here's the basic cycle: 1. Sell 30 delta puts.* Depending on your account size, how aggressive you want to be, and how patient you are, you can sell one contract, 45 days-'til-expiry or ladder these out in time (e.g., one at the November expiry 30 delta; one in the December at the 30; one in January at the 30). 2. Allow the short put(s) to go to expiry. (a) If price is above the short put at expiry, the short put expires worthless, and you keep the premium you received for selling it. You can then re-up the position in the next monthly at the 30 delta, and then lather, rinse, repeat the process. If you've laddered out; you can re-up in the back month at its 30 delta. (b) If price is below the short put strike at expiry, you are assigned shares, after which you proceed to sell call(s) against them to reduce your cost basis over time. I generally sell the 20-30 delta short call against, and then roll the short call for duration when it has decreased significantly in value or-- if it has been broken -- to keep it clear of current price (because I want to hold on to the shares; I don't want them called away).** You can naturally continue to sell short puts if you want to continue acquiring additional shares at lower prices. * -- Naturally, selling a given 30 delta may not be where you would want to ideally acquire, so having a fairly long list of underlyings with "ideal" buy points is a good idea. While you're waiting for some, others may be "ripe." For me personally, I generally stick to a small number of comparatively high yield exchange-traded funds -- e.g., EFA, TLT, IYR, SPY, but I'm fine with waiting months for potential buy points and/or am willing to sell 30 deltas on a quarterly basis as compared to forty-five days out in time to get strikes more distant from current price than a 45 day 30 delta would be (compare SPY November 17th 244 short put (28 delta) with, for example, the March 29th (Quarterly) 237 (29 delta)). ** -- When rolling a short call out for duration, you always want to roll for a credit. If you want to attempt to improve the strike, you generally have to roll out further in time to do this, which is naturally okay in this case, since you want to hold onto the shares for the dividends. However, you don't want to roll out further in time than you absolutely have to, and you may have to consider improving strikes a bit more incrementally than you'd like. I mean, who wants to roll out a year to get their calls clear of current price? (Extreme example, but you get the idea). by NaughtyPinesUpdated 338
Real Estate Might be consolidating before a breakout. Not sure how the fundamentals compare though.by RHTrading1
IYR Real Estate Buy Targets SetShort Term buy targets. good run up. looking for a potential retrace after this rejection if it falls out of the channel.by RHTrading3
RE - Against the GrainReal Estate has been hot recently, especially home builders. I'm taking advantage of some expected profit taking and cooling down. Note everytime the RSI hit "overbought" there was a slight correction. Lets short it here with a target of $78. Best of Luck! $IYRShortby ceej730Updated 3
Good Return on Risk trade on IYR (Debit spread)With a low Implied volatility rank of 15 in the real estate ETF I decided to make a directional bet with a debit put spread. This is a low probability trade, but will add some negative deltas to my portfolio. It does have a decent R:R of almost 2:1 so at least I will get paid when I am right and my risk is defined. Bought a Vertical debit put spread on IYR for $1.01 per contract. I did 5 contracts so the trade would look like this: (+5) 79 Put (-5) 76 Put Max win $995 Max loss -$505 Probability of profit is 45%Shortby AlexanderGotayUpdated 2211
IYR Super BullWith the market running, I thought I would continue to add long delta on an ETF that is possibly catching up. This isn't a normal setup that I would do, but it still takes on one of the principles of premium selling, which is reducing cost basis. Trade Setup: +1 IYR Apr 21 76P/79P/81C Super Bull @ $0.01 DTE: 50 Max Win: Theoretically Undefined Max Loss: $301 Breakeven: $81.01 Trade Management: The trade acts very interesting, as it will not make any money at expiration unless it is over $81.01. In the mean time, however, any expansion in volatility would help out my call (hinder the short put spread and possibly show a paper loss); and obviously a continued up move would benefit both sides of this trade. The only way for this trade to "lose" would be to trade and expire down below $79. My loss would be the difference between $79 minus closing price at expiration, down to $76. $79 - closing price = loss. I am going to monitor the trade closely, as it's fairly new and I'm trying to adapt to an up moving market, so my initial target for the spread is $200. Green zone is profit potential; Vertical black bar is expiration.Longby Benji3
IYR Long IdeaIYR broke out of an inerse head and shoulders pattern om the first trading day of 2017. It since formed a bull flag and broke out of that on Thursday. I am looking for a target of $80.50+ at longer-term resistance.Longby ClosingBasisUpdated 3
Bullish Cup Pattern SetupLong Stop-Limit @ 79.15, Stop-Loss @ 77.45, Target @ 83.31, Risk/Reward = 2.45. Once price close above 80.54 move to breakevenLongby mtsportUpdated 3