ATM Ratio spread on FXE
Updated
With the IV rank above 50 on FXE its a good time to sell premium. I could do a Strangle or Straddle, but since we are at an extreme and very far from the 200 EMA I don't want the risk to the upside. So I will be making a at the money Put ratio spread. Selling 2 of the 102 Puts to finance one of the 104 Puts. This way we have a 69.5% chance to make money at expiration with no risk to the upside. If we manage early we can bump it up to around 90%.
Max Profit $227 per contract, will look close at 25% of credit received.
We make money as long as we stay above 99.73 in the next 44 days.
Max Profit $227 per contract, will look close at 25% of credit received.
We make money as long as we stay above 99.73 in the next 44 days.
Trade closed: target reached
Forgot to update this trade.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.