TRADE IDEA: EWZ MAY 27TH 22.5/31.5 SHORT STRANGLE
I already have a couple EWZ premium selling setups on, but with an implied volatility rank of 95 and implied volatility of 59, I'm going to put some more on here. I'm going small and using multiple expirations for setups to disperse my risk, while taking advantage of this fairly low priced underlying to haul in some pretty good credit.
Here's the metrics:
Probability of Profit: 73%
Max Profit: $105/contract
Buying Power Effect/Max Loss: ~$271/contract; undefined
Notes: I'm going short strangle here due to the limited buying power effect, as well as better metrics over an iron condor, where the long options "drag" on max proft. As with all my short strangles, I'll look to take this off at 50% max profit.
Here's the metrics:
Probability of Profit: 73%
Max Profit: $105/contract
Buying Power Effect/Max Loss: ~$271/contract; undefined
Notes: I'm going short strangle here due to the limited buying power effect, as well as better metrics over an iron condor, where the long options "drag" on max proft. As with all my short strangles, I'll look to take this off at 50% max profit.
评论:
Filled for a $104 credit.
