EWZ - (Short Premium) Selling straddle into high IVR

6 août 2018

There is no real clear price action direction, this chart has even room to run in both directions, and the 'IVR is high which makes it a good candidate for a short premium trade. I am selling a straddle as I can collect 10% of the underlying in premium in just 46 days.

6 août 2018

Transaction en cours

Sold a number of straddles to collect $3.50 @ $37, 44DTE

10 août 2018

Note

Rolled this into an inverted strangle with the calls now at 35. This cut my deltas in half so I am not as long. My plan going forward is if price pulls back into my inverted range of 35-37, when I get ready to roll into the next month I will re-establish a straddle.

10 août 2018

Note

Closed this for a $4 debit. There is a ton of event risk here and the IV rank is at 17%, so it's just not paying enough premium for the risk being taken. If this crashes hard and volatility gets pumped back in, I will definitely be back to sell premium and work back the loss.