EWZ Analysis

iShares MSCI Brazil Capped ETF (EWZ)

Update 4/11/2019I exited EWZ for a credit of $0.36, or 50.7% of maximum potential profit.

Shares rose by 1.1% over 13 days, or a +31% annual rate. The options position produced a +102.8% yield for a +2,886% annual rate.

On March 29 I  entered a short iron condor spread on EWZ, using options that trade for the last time 49 days later, on May 17. The premium is a $0.73 credit and the stock at the time of entry was priced at $41.33.

The implied volatility rank (IVR) stands at 28%.

Premium: $0.73 Expire OTM
EWZ-iron condor Strike Odds Delta
Long 52.00 99.0% 1
Break-even 46.73 92.0% 9
Short 46.00 85.0% 17
Short 36.00 83.0% 14
Break-even 30.73 91.0% 7.5
Long 30.00 99.0% 1

The premium is 12.2% of the width of the position’s wings.

The risk/reward ratio is 7.2:1.

By Tim Bovee, Portland, Oregon, March 29, 2019


Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.

No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decisions for his or her own account, and take responsibility for the consequences.

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