Open - EEM Calendar (5/22)

Written on June 9, 2008 by OptionsRopeaDope

I opened this a few weeks back, on 5/22, when I first noticed that the June/July 150 strike had an incresingly positive skew. Been waiting to post it here because I wanted to finish my template. Analysis under the table.

Symbol   EEM
Current Price  144.34
Current IV  32
IV Percentile - last 12 months  22%
IV Percentile - last 6 months  20%
IV Skew  +2.27
Technical Support/Resistance  143? - 161?
Opening Strike  150
Opening Debit/months  1.85, Jun/July
Break Evens  141/159
Std Dev move to expiration  12.2 points
Prob of expiring w/o adjustments  65%
Profit Traget  2.22 (20%)
Max Loss  1.39 (25%)
Back month options exist for adjustment?  Y
Earnings/news catalyst before exp?  N
Risk Graph  

 

I’m leaving off the risk graph because I don’t know how to go back in time to get it in ToS, but I will post them in the future.

This was, and still is, a good trade, even if it is on top of a double calendar I already have on at 140/150 on EEM. At one point last week, this trade was up a good 12%, although currently it is down 2% and very close to warranting an adjustment on any down move. A down move of a single one day deviation would cause that to happen. An up move of the same amount (a little over 2 points) would make this trade very profitable. Considering the heavy move down for EEM, and that I have still not had to adjust and am at about break even and in a profitable position in the next couple of days, with or without an adjustment, makes this a big winner in my book.

Popularity: 4% [?]

If you enjoyed this post, make sure you subscribe to my RSS feed!

Other posts like this one:

  • Open - RTH, IBM Calendars, WMT Double Calendar
  • RTH Double Calendar Close, 20% Profit
  • Position Updates - home stretch
  • Worst Financial Condition Since the Great Depression
  • Open - EEM, RTH, MSFT Calendars

    • Category Posted in Real Trades, Calendars, EEM

    RSS feed | Trackback URI

    Comments »

    No comments yet.

    Name (required)
    E-mail (required - never shown publicly)
    URI
    Your Comment (smaller size | larger size)
    You may use <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong> in your comment.

    Trackback responses to this post

    Copyright (C) 2008, OptionsRopeADope, LLC All rights reserved. U.S. Government Required Disclaimer: Commodity Futures Trading Commission.*Futures, options, and spot currency trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results. CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.