OPENING: EWZ JUNE 21ST 34.5/37.5/44/47 IRON CONDOR
... 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 of the wings collected. Shooting for that ol' 50% max. Go 37.5/44 short strange in June, and you'll collect 1.60 or so.
Metrics:
Max Profit: 1.04 ($104)/contract
Max Loss: 1.96 ($196/contract)
Break Evens: 36.46/45.04
Delta/Theta: -2.36/1.18
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 of the wings collected. Shooting for that ol' 50% max. Go 37.5/44 short strange in June, and you'll collect 1.60 or so.
Metrics:
Max Profit: 1.04 ($104)/contract
Max Loss: 1.96 ($196/contract)
Break Evens: 36.46/45.04
Delta/Theta: -2.36/1.18
Operación activa:
Closed the 44 short calls for .15/contract debit (the 47's appear no bid) and then sold the 41/44's against for a .53/contract credit on call side approaching worthless; scratch at 1.04 - .15 + .53 = 1.42.
Operación activa:
Rolling the call side down on approaching worthless to the 37.5/40.5 for a .72/contract credit; scratch at 2.14.
Operación cerrada manualmente:
Although this trade could've still worked out, it's basically a broken setup, so taking the opportunity to take it off here for a small loss -- covering for 2.37, a loss of .23/$23.