Open - EEM Calendar - 130 calls

Written on July 24, 2008 by OptionsRopeaDope

This was opened Tuesday, and already needs a little recalculation, given that EEM split 3 for 1 this morning. So technically, the call is for a strike price of 43.33, and all of the breakevens listed below use the new numbers. As for the trade itself, IV is still low for EEM, the skew was very close to 0, and the breakevens are very wide. Ill take it.

Symbol   EEM
Current Price  42.30
Current IV  29
IV Percentile - last 12 months  25
IV Percentile - last 6 months  25
IV Skew  0
Technical Support/Resistance  41?/48?
Opening Strike  43.73
Opening Debit/months  2.30, Aug/Sep
Break Evens  41, 45.67
Std Dev move to expiration  3.01 points
Prob of expiring w/o adjustments  55%
Profit Traget  2.76
Max Loss  1.73
Back month options exist for adjustment?  Yes
Earnings/news catalyst before exp?  n/a
Risk Graph  cant find one with the new prices!

Even with the substantial, 2.5 Standard deviation move today (-1.62), the position is down just 1.74%. I’ll take it, and adjust with a further down move.

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