EWZ and the Emerging Markets ETF EEM have a strong correlation (Since EEM have 7.7% of brazil stocks). The correlation for the last year have been .92, and the last 30 days have drop to .40.
Today we got a strong move on EWZ of -3.18% at the time of the trade and -.64% on EEM. By trading one to the upside and the other to the downside I will look to reduce risk on this trade until time has passed enough to take my profits.
The trade is two Synthetic Covered Strangles
EEM 38.5/40.5 Calls for $1.92 credit
EWZ 38.5/35 Puts for $2.95 credit
In total we got $4.87 credit (1 to 1 ratio) and will look to close at $2.00.
I don't do a lot of these trades, but I find them very interesting so lets if in the next 30 days we can close for profits.
Today we got a strong move on EWZ of -3.18% at the time of the trade and -.64% on EEM. By trading one to the upside and the other to the downside I will look to reduce risk on this trade until time has passed enough to take my profits.
The trade is two Synthetic Covered Strangles
EEM 38.5/40.5 Calls for $1.92 credit
EWZ 38.5/35 Puts for $2.95 credit
In total we got $4.87 credit (1 to 1 ratio) and will look to close at $2.00.
I don't do a lot of these trades, but I find them very interesting so lets if in the next 30 days we can close for profits.
Dagangan ditutup: sasaran tercapai
Winning Trade, Closed.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.