SMH Analysis

VanEck Vectors Semiconductor ETF (SMH)

I have entered a short iron condor spread on SMH, using options that trade for the last time 45 days hence, on July 19. The premium is a $1.18 credit and the stock at the time of entry was priced at $101.54.

The profit zone for this position is between $112 on the upside and $91 on the downside.

The implied volatility rank (IVR) stands at 47.0%.

Premium: $1.18 Expire OTM
SMH-iron condor Strike Odds Delta
Long 117.00 95.0% 6
Break-even 113.18 91.0% 10.5
Short 112.00 87.0% 15
Puts
Short 91.00 82.0% 16
Break-even 85.18 87.5% 11
Long 84.00 93.0% 6

The premium is 19.7% of the width of the position’s wings.

The risk/reward ratio is 4.1:1.

By Tim Bovee, Portland, Oregon, June 4, 2019

Disclaimer

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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Based on a work at www.timbovee.com.

 

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