Trading EWZ with options.
Calenders and Verticals in specific.
looking for a retrace so im open ended on the position to the down side.
Im long term Bullish.
Short term Bearish.
Also note, if retracement actually matures, it will leave a bearish formation producing resistance levels.
The market will have to fight back a little harder to bring back the current...
... for a 2.71 db.
I don't have any IWM on, and we're in a low volatility market, and calendars are a low volatility strategy, so putting one on here ... . The back month is setup around the 40 delta; the front at the same strike as the back.
Unfortunately, as with all calendars and diagonals, they're aren't a good deal of metrics to look at. Here's what we do...
Volatility in the broader indices has been on the ebb all week. What does this mean for premium selling? Well, it means that the premium in index ETF's like SPY, IWM, QQQ, and DIA is less rich and therefore not as attractive for selling premium. Ordinarily, when this occurs, I turn my attention somewhat away from broad market index ETF plays or plays in...
