Symbols traded today: EWZ short Iron Fly (1DTE)
I entered a short Iron Fly position on EWZ, which tracks the Brazilian market. It expires the next day. I passed on my usual U.S. markets trades, tracking the S&P 500 and the Nasdaq Composite, because of the release Friday morning of inflation numbers in the Personal Consumption Expenditures Price Index. The Iron Fly position profits when the price remains stable, the PCE sometimes results in sudden price moves, and the Government of Brazil has no economic release of similar magnitude on Friday. So EWZ seemed to be more likely to produce a profit.
I exited one in-the-money option, the short call, to avoid exercise with additional fees, and allowed the other options to expire. Note that I’ve added individual option pricing to the position structure section in order to accommodate partial exits such as I did with this position.
EWZ short Iron Fly
| LOT: | 1 | ENTRY DATE: | 12/21/2023 |
| EXIT DATE: | 12/22/2023 | ||
| DAYS HELD: | 1 |
Entry and Exit
| METRIC | CREDIT | DEBIT | CHANGE | CHANGE % | ANNUALIZED CHANGE % |
| Options premium | $ 0.39 | $ 0.76 | $ (0.37) | -48.7% | -17672% |
| METRIC | ENTRY | EXIT | CHANGE | CHANGE % | ANNUALIZED CHANGE % |
| Stock price | $ 34.21 | $ 34.74 | $ (0.53) | 1.55% | 565% |
| Impllied Volatility Rate | -2.0 | -6.8 | -4.8 | ||
| Days to expiration | 1 | 0 |
The structure of the position
| STRUCTURE | STRIKE | ODDS EXPIRE OTM | DELTA | IN PRICE | OUT PRICE | NET PRICE |
| Calls | ||||||
| Long | 35.00 | 94.0% | 7 | $ (0.01) | $ – | $ (0.01) |
| Break-even | 34.39 | 79.0% | 21.5 | |||
| Short | 34.00 | 64% | 36 | $ 0.31 | $ (0.76) | $ (0.45) |
| Puts | ||||||
| Short | 34.00 | 63.0% | 36 | $ 0.12 | $ – | $ 0.12 |
| Break-even | 33.89 | 75.5% | 24 | |||
| Long | 33.50 | 88.0% | 12 | $ (0.03) | $ – | $ (0.03) |
| ====== | ||||||
| ` | NET TOTAL: | $ (0.37) |
Risk and Reward
| Per contract: | |
| Reward | 39.00 |
| Risk | 36.00 |
| R/R Ratio (n:1) | 0.9 |
By Tim Bovee, Portland, Oregon, December 21-22, 2023
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.
License
All content on Tim Bovee, Private Trader by Timothy K. Bovee is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Based on a work at www.timbovee.com.
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