AlexanderGotay

61% Probability on EWW (Strangle)

AMEX:EWW   ISHARES INC ISHARES MSCI MEXICO ETF
Yesterday We got a close above the 200 Moving average and EWW             is right inside the Volume area, and right at the Point of control. So I expect two-way action between buyers and sellers, giving me a chance to make a neutral trade.

With EWW             IV Rank at 57, I sold the 54/50 Strangle (30 Delta) that expires in February, to take advantage of the high volatility .


The trade:
30 Days to Expiration (2/16/2018)
Sold the 54 CAll
Sold the 50 PUTS
Credit receives $1.10 each
Max profit $110.00 for each contract
Probability of profit 61%
交易進行: With 22 days left on the trade and still high implied volatility. I decided to extend the duration of the trade to 50 days by rolling to the march expiration.

I still wanted to be inside the expected move, so I rolled up and out both calls and puts. This is somewhat risky, and I could be whipsaw, but I am just playing the probabilities that it will stay inside that expected move most of the time.

The roll was:
Buy to close the Feb 50 Put
Buy to close the Feb 54 Call
Sell to open the Mar 52 Put
Sell to open the Mar 56 Call

Credit received for the roll $0.30
Now my total credit received is $1.40
Will close the trade at $0.85

ZH 繁體中文
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
AR العربية
HE עברית
首頁 股票篩選器 外匯篩選器 加密貨幣篩選器 全球財經日曆 如何運作 圖表功能 網站規則 版主 網站 & 經紀商解決方案 小工具 圖表庫 功能請求 部落格 & 新聞 常見問題 幫助 & 維基 推特
概述 個人檔案設定 帳戶和帳單 我的支援工單 聯絡客服 發表的想法 粉絲 正在關注 私人訊息 在線聊天 登出