EWZ - $41.57 - New Campaign vs Monthly Triple Bottom Formation

WklyOptions

Well-known member
269 24
Hi, there,

It's been a busy week for me - managing campaigns but while on travels to the Pacific!

On Fri, 10/24/14, I opened a new campaign on EWZ - a Bullish campaign taking advantage of a Monthly Triple Bottom Key Support pattern. :cool:

In addition there was massive bearish momentum in the past 2 months. Observe also that the front weekly Oct5(31st) options has massive Implied Volatility vs the Jun 2015 back month (see attached chart #2).

I am willing to give this campaign an estimate of 8-12 weeks - with upside Target first at $48 - and the final 2nd Target at $54.50 zone.

I have attached files for your enjoyable learning & observations:

(1) EWZ charts - lower right panel = Monthly Chart w/ triple bottom formation.
(2) EWZ TOS Matrix = showed entry prices.
(3) EWZ PL Graph = showed typical "tent" of a Calendar Spread campaign.

New Entry Details:

Bought to Open (+30) EWZ Jun 2015(20th) $44 Call @ (-$2.93)

Initial Cost Basis & Risk: (-$2.93) x 30-lot = (-$8790) Max Risk & Debit

Adjustment: Elected to SELL front weekly Oct5(31st) Calls w/ high IV

Sold to Open (-30) EWZ Oct5(31st) $44 Call @ (+$1.79)

Adjusted Cost Basis: (-$1.14) per spread.

Plan:
(1) Continue to harvest extrinsic time value by selling front weekly calls throughout campaign duration.
(2) Hold Long Jun 2015 $44 Calls - until at least EWZ > $44.
(3) Buy back short Oct5(31st) $44 Call if Ask < (-$0.30).
(4) Look to Adjust if EWZ > $44 this week.

Basically - I put up $8800 to open this campaign. The $8800 is my Total Risk - it is an "investment asset" that will generate income for me every single week during this campaign. This asset may LOSE value - but the campaign will continue to generate income. Or - this asset may GAIN value - and STILL be generating weekly income for my trading account! Pretty cool, right? :clap:

In the first opening week I immediately generated cash income to my account of (+$5370).

Note = see how high the Implied Volatility is of the Oct call vs the Jun 2015 call? This is how I am able to generate a pretty large % credit on the weekly option short leg. Understand? (y) :smart:

Well - let's watch it unfold over the next couple of months (target campaign duration about 8-12 weeks max). Let's see how much weekly $ cash income this high front weekly option Implied Volatility will generate for this campaign's duration. :whistling

I hope you will enjoy this learning scenario using this new open trade campaign. Feel free to email me your questions & comments/observations! :idea: :smart:

Regards,

WklyOptions
 

Attachments

  • EWZ - $41.55 - TOS 6 Scrns - Entry - Monthly 3x Bottom.png
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  • EWZ - $41.55 - TOS Mtrx - Entry - Init Cost Basis (-$2.93) - Adj Cost Basis (-$1.14) - as attach.png
    EWZ - $41.55 - TOS Mtrx - Entry - Init Cost Basis (-$2.93) - Adj Cost Basis (-$1.14) - as attach.png
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  • EWZ - $41.55 - TOS PL Graph - Entry - OTM Calendar Spread - as attachment.png
    EWZ - $41.55 - TOS PL Graph - Entry - OTM Calendar Spread - as attachment.png
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WklyOptions

Well-known member
269 24
EWZ $38.83 after Brazil elections - Adjs Net (+$1020) income generation

Good morning, T2W traders,

Busy morning with EWZ adjustments after the results of the Brazil election.

EWZ and the entire Brazilian equities market declined after election results. EWZ declined to $38.83 prompting several key Adjustments this morning which I will detail out for you. In addition - the front wkly Oct5(31st) options have Implied Volatility back to "normal" levels (see attached chart #B).

Attached Charts:

A. TOS 6-screen price charts.
B. TOS options matrix of Oct5(31st) Adjustments.
C. TOS options matrix of Jun 2015(20th) Adjustment.
D. TOS PL Graph - Pre Adjs.
E. TOS PL Graph - Post Adjs.

EWZ @ $38.83

Plan of Adjustments:

1. Exit Short Oct5(31st) $45 Call asap. Minimal extrinsic time value left in it.
2. Sell Call Credit $39/$40 on Oct5(31st) spread - capture extrinsic time value.
3. Roll "down and in" - for the Long Jun 2015(20th) $45 Call to Dec(20th) $41 Call to increase bullish torque in case EWZ will experience a "bounce" of Key Support at $38. :cool:

Adjustments:

4. Bought to Close (+30) EWZ Oct5(31st) $45 Call @ (-$0.04).
5. Sold to Open (-30) EWZ Oct5(31st) $39 Call @ (+$0.58)
6. Bought to Open (+30) EWZ Oct5(31st) $40 Call @ (-$0.28)

@ Net Credit (+$0.26) (y)

7. Sold to Close (-30) EWZ Jun 2015(20th) $45 Call @ (+$0.92)
8. Bought to Open (+30) EWZ Dec(20th) $41 Call @ (-$0.84)

@ Net Credit (+$0.08) (y)

Total Adjustments: Net Net Credit (+$0.34) :clap:

Current Positions:

Short (-30) EWZ Oct5(31st) $39 Call @ (+$0.58)
Long (+30) EWZ Oct5(31st) $40 Call @ (-$0.28)

Long (+30) EWZ Dec(20th) $41 Call @ (-$0.84)

Initial Cost Basis: (-$2.93) per spread, initiated Fri, 10/26/2014.

Previous Cost Basis: (-$1.14) per spread.

Adjusted Cost Basis: (-$0.80) per spread. (y)

Plan:
9. Hold positions. Let's watch EWZ price action at Key Support at $38.
10. If breaks below $38 - and Closes < $38 for several days - then may need to Adjust again.

Regards,

WklyOptions
 

Attachments

  • EWZ - $38.83 - TOS 6 Scrns - Entry - Monthly 3x Bottom.png
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  • EWZ - $38.83 - TOS Mtrx - Adjs - Front Wkly Oct5(31st) Adjs.png
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  • EWZ - $38.83 - TOS Mtrx - Adjs - Jun 2015(20th) $45 Call Adjustment.png
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  • EWZ - $38.83 - TOS PL Graph - Pre Adj.png
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  • EWZ - $38.83 - TOS PL Graph - Post Adjs.png
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WklyOptions

Well-known member
269 24
EWZ Adj 10/28/14 @ $41.29

Current Positions:

Short (-30) EWZ Oct5(31st) $39 Call @ (+$0.58)
Long (+30) EWZ Oct5(31st) $40 Call @ (-$0.28)

Long (+30) EWZ Dec(20th) $41 Call @ (-$0.84)

Initial Cost Basis: (-$2.93) per spread, initiated Fri, 10/26/2014.

Previous Cost Basis: (-$1.14) per spread.

Adjusted Cost Basis: (-$0.80) per spread. (y)

Hi, T2W traders,

The EWZ campaign had one Adjustment towards the close yesterday ahead of both Key Resistance pivot and also FOMC event.

Adjustment:

Sold to Open (-30) EWZ Oct5(31st) $41 Call @ (+$0.87) (attached #1)

@ Net Credit (+$0.87)

Current Positions:

Short (-30) EWZ Oct5(31st) $39 Call @ (+$0.58)
Long (+30) EWZ Oct5(31st) $40 Call @ (-$0.28)
Short (-30) EWZ Oct5(31st) $41 Call @ (+$0.87)

Long (+30) EWZ Dec(20th) $41 Call @ (-$0.84)

Initial Cost Basis: (-$2.93) per spread, initiated Fri, 10/26/2014.

Previous Cost Basis: (-$0.80) per spread.

Adjusted Cost Basis: (+$0.07) per spread = Above zero means positive return. :clap:

Plan:

1. Hold Oct5(31st) options to Expiry Friday, 10/31/2014.

Lesson to Learn: :smart:

2. Continue to monitor the Adjusted Cost Basis metric as the campaign continues.

3. Don't worry too much about trying to understand the TOS PL-Graphs for now. These were included to help you identify Max Loss and possible Profit Zones during the campaign duration. (attached #2, #3)

Regards,

WklyOptions
 

Attachments

  • EWZ - $41.29 - TOS Mtrx - Adjustments Tues 10.28.2014 - Net Credit (+$0.87).png
    EWZ - $41.29 - TOS Mtrx - Adjustments Tues 10.28.2014 - Net Credit (+$0.87).png
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  • EWZ - $41.29 - TOS PL Graph - Pre Adj - Tues 10.28.2014 - Posted.png
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  • EWZ - $41.29 - TOS PL Graph - Post Adj - Tues 10.28.2014 - Posted.png
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WklyOptions

Well-known member
269 24
EWZ $43.24 = Expiry Fri adjustment & Lesson Learned...

Hi, T2W traders,

The EWZ campaign had one Adjustment towards the close yesterday ahead of both Key Resistance pivot and also FOMC event.

Adjustment:

Sold to Open (-30) EWZ Oct5(31st) $41 Call @ (+$0.87) {attached #1}

@ Net Credit (+$0.87)

Current Positions:

Short (-30) EWZ Oct5(31st) $39 Call @ (+$0.58)
Long (+30) EWZ Oct5(31st) $40 Call @ (-$0.28)
Short (-30) EWZ Oct5(31st) $41 Call @ (+$0.87)

Long (+30) EWZ Dec(20th) $41 Call @ (-$0.84)

Initial Cost Basis: (-$2.93) per spread, initiated Fri, 10/26/2014.

Previous Cost Basis: (-$0.80) per spread.

Adjusted Cost Basis: (+$0.07) per spread = Above zero means positive return. :clap:

Plan:

1. Hold Oct5(31st) options to Expiry Friday, 10/31/2014.

Lesson to Learn: :smart:

2. Continue to monitor the Adjusted Cost Basis metric as the campaign continues.

3. Don't worry too much about trying to understand the TOS PL-Graphs for now. These were included to help you identify Max Loss and possible Profit Zones during the campaign duration. (attached #2, #3)

Regards,

WklyOptions

Hi, T2W traders,

Sorry of the late update this past wknd - just got back to USA from travels in Asia. Still a bit jet lagged and trying to finish getting back to some "normalcy" here. :cool:

In any case - here are the EWZ campaign Adjustments I made on Fri, 10/31/2014.

EWZ continues to show bullish trend/momentum bias - and its upside Targets include the $45-$47 zone, plus additional final Target zone in the $54.50 region. {see attached #1}

Here are the Adjustments for Fri, 10/31/2014 = EWZ @ $43.24

Adjustments:

1. Short (-30) EWZ Oct5(31st) $39 Call @ (+$0.58)
2. Long (+30) EWZ Oct5(31st) $40 Call @ (-$0.28)

Both expired ITM = Net Debit (-$1.00) {see Attached #2}

3. Bought to Close (+30) EWZ Oct5(31st) $41 Call @ (-$2.27) = rolled up & out 1 wk. {see Attached #2}

4. Sold to Open (-30) EWZ Nov1(7th) $43.5 Call @ (+$0.79)
5. Bought to Open (+30) EWZ Nov1(7th) $44.5 Call @ (-$0.44)

@ Net Debit (-$1.92) {see attached #2}

Net Net Debit = (-$2.92) {see attached #2}

Current Positions:

Short (-30) EWZ Nov1(7th) $43.5 Call @ (+$0.79)
Long (+30) EWZ Nov1(7th) $44.5 Call @ (-$0.44)

Long (+30) EWZ Dec(20th) $41 Call @ (-$0.84)

Initial Cost Basis: (-$2.93) per spread, initiated Fri, 10/26/2014.
Previous Cost Basis: (+$0.07) per spread.
Adjusted Cost Basis: (-2.85) per spread = back to near Initial Cost Basis.

Plan:
6. Hold positions. Continue to adjust front weekly short options.
7. Continue bullish Target objectives.

Lesson(s) Learned:

8. Previous Adjustment when the short Oct5(31st) $41 Call options were entered, the timing was incorrect - it made the campaign neutral to bearish - when in fact EWZ remained bullish. This is why effectively all of the Open Profits were given back when EWZ continue to go up this week. {see Attached #3 = Pre Adj P/L Graph} (n)

9. Now the newly Adjusted EWZ campaign is back to the correct bullish alignment and will be maintained for now. {see Attached #4 = Post Adj P/L Graph} (y)

Feel free to email your questions and comments!

Best Regards,

Jason (WklyOptions)
 

Attachments

  • EWZ - $43.24 - TOS 6 Scrns - Expiry Fr Adjs - Still Bullish.png
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  • EWZ - $43.24 - TOS Mtrx - Expiry Fr Adjs - Still Bullish - Net Debit (-$2.92).png
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  • EWZ - $43.24 - TOS PL Graph - Pre Adjs - Campaign was Neutral-Bearish - Posted.png
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  • EWZ - $43.24 - TOS PL Graph - Post Adjs - Expiry Fr - Now Bullish Again - Posted.png
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WklyOptions

Well-known member
269 24
EWZ @ $42.14 -consolidating - Adjustments today...

Current Positions:

Short (-30) EWZ Nov1(7th) $43.5 Call @ (+$0.79)
Long (+30) EWZ Nov1(7th) $44.5 Call @ (-$0.44)

Long (+30) EWZ Dec(20th) $41 Call @ (-$0.84)

Initial Cost Basis: (-$2.93) per spread, initiated Fri, 10/26/2014.
Previous Cost Basis: (+$0.07) per spread.
Adjusted Cost Basis: (-2.85) per spread = back to near Initial Cost Basis.

Plan:
6. Hold positions. Continue to adjust front weekly short options.
7. Continue bullish Target objectives.

Lesson(s) Learned:

8. Previous Adjustment when the short Oct5(31st) $41 Call options were entered, the timing was incorrect - it made the campaign neutral to bearish - when in fact EWZ remained bullish. This is why effectively all of the Open Profits were given back when EWZ continue to go up this week. {see Attached #3 = Pre Adj P/L Graph} (n)

9. Now the newly Adjusted EWZ campaign is back to the correct bullish alignment and will be maintained for now. {see Attached #4 = Post Adj P/L Graph} (y)

Feel free to email your questions and comments!

Best Regards,

Jason (WklyOptions)

Hi, T2W traders,

I made Adjustments today with the EWZ campaign for the following reasons (EWZ @ $42.14):

a. EWZ appears to be in a consolidative mode today on the Hourly and Daily chart. {attached #1}
b. The short Nov1(7th) 43.5/44.5 Call spread has a Buy to Close mid at (-$0.10). {attached #2}
c. I can get more extrinsic time value with the Nov1(7th) 42/43 Call spread with a Sell to Open mid at (+$0.44) and with only two more trading days left on the spread. {attached #3}

Adjustments:

Bought to Close(+30) EWZ Nov1(7th) $43.5 Call @ (-$0.16)
Sold to Close (-30) EWZ Nov1(7th) $44.5 Call @ (+$0.05)
@ Net Debit (-$0.11)

Sold to Open (-30) EWZ Nov1(7th) $42 Call @ (+$0.71)
Bought to Open (+30) EWZ Nov1(7th) $43 Call @ (-$0.28)
@ Net Credit (+$0.43)

Net Net Credit (+$0.32) (y)

Current Positions:

Short (-30) EWZ Nov1(7th) $42 Call @ (+$0.71)
Long (+30) EWZ Nov1(7th) $43 Call @ (-$0.28)
Long (+30) EWZ Dec(20th) $41 Call @ (-$0.84)

Initial Cost Basis: (-$2.93) per spread, initiated Fri, 10/26/2014.
Previous Cost Basis: (-$2.85) per spread.
Adjusted Cost Basis: (-$2.53) per spread. :cool:

Position & Chart Analysis:

The overall EWZ campaign remains in a bullish profile. The charts are mixed.{attached #1}
Monthly = bullish bias with a Double Bottom and MACD bullish divergence.
Weekly = bearish momentum bias but had strong upside bounce off the $38.50 level.
Daily = consolidation in the $42 zone near the Keltner Channel EMA(20) line.
Although EWZ may retest the lows in the $38.50 - $40 zone - the Monthly chart setup remains key to this campaign. Hence the bullish profile is maintained. {attached #4}

Plan:
1. Plan to execute rollover adjustments this Expiry Friday.
2. Continue to harvest extrinsic time value on front weekly short call credit spreads.

Regards,

WklyOptions
 

Attachments

  • EWZ - $42.14 - TOS PL Graph - Post Adj - Posted.png
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  • EWZ - $42.14 - TOS Mtrx - Opened Nov1(7th) $42-$43 spread - Net Credit (+$0.43) - Posted.png
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  • EWZ - $42.14 - TOS 6 Scrns - Daily Consolid - Posted.png
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  • EWZ - $42.14 - TOS Mtrx - Exited Nov1(7th) $43.5-$44.5 spread - Net Debit (-$0.11) - Posted.png
    EWZ - $42.14 - TOS Mtrx - Exited Nov1(7th) $43.5-$44.5 spread - Net Debit (-$0.11) - Posted.png
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WklyOptions

Well-known member
269 24
Update on EWZ $40.87 - will Adj at Close today...

Current Positions:

Short (-30) EWZ Nov1(7th) $42 Call @ (+$0.71)
Long (+30) EWZ Nov1(7th) $43 Call @ (-$0.28)
Long (+30) EWZ Dec(20th) $41 Call @ (-$0.84)

Initial Cost Basis: (-$2.93) per spread, initiated Fri, 10/26/2014.
Previous Cost Basis: (-$2.85) per spread.
Adjusted Cost Basis: (-$2.53) per spread.

Hi, T2W members,

EWZ @ $40.87

EWZ had a down gap on Thurs - and today it remains at that approximate price zone. It is a 50/50 bet at this point for EWZ to retest the lows at $38-$39 - or - to retest Key Support at the $42-$43 level.

However - the Dec(20th) $41 Call is currently At the Money and has significant extrinsic time value. I will look to SELL this leg out to lock up the extrinsic time value. I will plan to roll it up - and possibly out (and hence Cost Basis will go up again) as EWZ options prices exit at the close today.

I will detail my EWZ Adjustment(s) later today after the Close.

Regards,

WklyOptions
 

WklyOptions

Well-known member
269 24
EWZ $40.98 - new Adj Cost Basis (-$1.13) - my Adjs going into Close of Expiry Friday

Current Positions:

Short (-30) EWZ Nov1(7th) $42 Call @ (+$0.71)
Long (+30) EWZ Nov1(7th) $43 Call @ (-$0.28)
Long (+30) EWZ Dec(20th) $41 Call @ (-$0.84)

Initial Cost Basis: (-$2.93) per spread, initiated Fri, 10/26/2014.
Previous Cost Basis: (-$2.85) per spread.
Adjusted Cost Basis: (-$2.53) per spread.

Hi, T2W traders,

Well - as promised in the last post - here are the Adjustments and "thinking" that went along with today's trades. Hope you are all enjoying and at least learning to get a "feel" for how my open campaigns are designed and adjusted dynamically to always try to extract the maximum extrinsic time value of At the Money options. :smart:

EWZ @ $40.98

Chart & Position Analysis for Adjustments:

1. EWZ gapped down on Thurs, 11/06/2014, and remained in a consolidation range throughout today's trading action. The overall Monthly chart remains bullish with a Triple Bottom formation. {see attached #1} {see attached #4 for P/L before Adjs}

2. The Nov1(7th) Wkly Call Credit Spread at $42/$43 expired Out of the Money.

3. A new Nov2(14th) Wkly Call Credit Spread at $41/$42 was initiated to generate additional extrinsic time value. {see attached #2} (y)

4. The Dec(20th) $41 Call is now At the Money - and has significant extrinsic time value. I SOLD this option to lock in the extrinsic time value - and rolled up to the Dec(20th) $44 Call strike where the extrinsic time value is significantly less. {see attached #3} :smart:

Adjustments (today):

Short (-30) EWZ Nov1(7th) $42 Call - expired Out of the Money.
Long (+30) EWZ Nov1(7th) $43 Call - expired Out of the Money.

Sold to Open (-30) EWZ Nov2(14th) $41 Call @ (+$0.82)
Bought to Open (+30) EWZ Nov2(14th) $42 Call @ (-$0.45)
@ Net Credit (+$0.37) (y)

Sold to Close (-30) EWZ Dec(20th) $41 Call @ (+$1.71)
Bought to Open (+30) EWZ Dec(20th) $44 Call @ (-$0.68)
@ Net Credit (+$1.03) (y)

Net Net Credit = (+$1.40) :clap:

Current Positions: :cool:

Short (-30) EWZ Nov2(14th) $41 Call @ (+$0.82)
Long (+30) EWZ Nov2(14th) $42 Call @ (-$0.45)

Long (+30) EWZ Dec(20th) $44 Call @ (-$0.68)

Initial Cost Basis: (-$2.93) per spread, initiated Fri, 10/26/2014.

Previous Cost Basis: (-$2.53) per spread.

Adjusted Cost Basis: (-$1.13) per spread. (y)

Plan:
1. Hold positions through next week Expiry. {see attached #5 for P/L Post Adjs}
2. Consider possible Adjustment zones at $38.5 and $43.5.

I hope you are able to follow along the EWZ price action, the reasons WHY I am making the Adjustments on Expiry Friday, and the ongoing Adj Cost Basis (-$1.13). (y)

Note also - I am still bullish on EWZ on the basis of the Monthly Triple Bottom formation and bullish divergence (MACD). However, I understand and accept that I probably will need to extend the campaign as originally designed out to a couple of months longer in duration and temporarily increasing the Adj Cost Basis again.

However - if the EWZ price action turns out as expected - the campaign will generate a very nice ROI even if it takes a couple of months to unfold.

Any questions and/or comments? Have a great weekend! :clap:

WklyOptions ;)
 

Attachments

  • EWZ - $40.98 - TOS 6 Scrns - Short Term Consolidation Between $38 and $43.png
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  • EWZ - $40.98 - TOS Mtrx - New Nov2(14th) Wkly $41c-$42c Call Credit (+$0.37) - Posted.png
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  • EWZ - $40.98 - TOS Mtrx - Rolled Up Dec(20th) $41c to $44c - Net Credit (+$1.03) - Posted.png
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  • EWZ - $40.98 - TOS PL Graph - Pre Adj on Expiry Fri - Posted.png
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  • EWZ - $40.98 - TOS PL Graph - Post Adj on Expiry Fri - Posted.png
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WklyOptions

Well-known member
269 24
EWZ $39.65 - time to Adjust for this week...

Current Positions: :cool:

Short (-30) EWZ Nov2(14th) $41 Call @ (+$0.82)
Long (+30) EWZ Nov2(14th) $42 Call @ (-$0.45)

Long (+30) EWZ Dec(20th) $44 Call @ (-$0.68)

Initial Cost Basis: (-$2.93) per spread, initiated Fri, 10/26/2014.

Previous Cost Basis: (-$2.53) per spread.

Adjusted Cost Basis: (-$1.13) per spread. (y)

Hi, T2W traders,

EWZ @ $39.65

Chart & Position Analysis for Adjustments:

1. EWZ has continued to remain in a consolidation range throughout this week's trading action. The overall Monthly chart remains bullish with a Triple Bottom formation. {see attached #1}

2. The Nov2(14th) Wkly Call Credit Spread at $41/$42 has lost most of its extrinsic time value. It is able to be closed for a Net Debit (-$0.03) {see attached #2}

3. The Nov(22nd) Wkly Call Credit Spread at $40/$41 can be sold for a Net Credit (+$0.29). {see attached #2}

Adjustments (today):

Bought to Close (-30) EWZ Weekly Nov2(14th) $41 Call @ (-$0.05)
Sold to Close (+30) EWZ Weekly Nov2(14th) $42 Call @ (+$0.02)

@ Net Debit (-$0.03)

Sold to Open (-30) EWZ Nov(22nd) $40 Call @ (+$0.62)
Bought to Open (+30) EWZ Nov(22nd) $41 Call @ (-$0.33)

@ Net Credit (+$0.29)

Net Net Credit = (+$0.26)

Current Positions:

Short (-30) EWZ Nov(22nd) $40 Call @ (+$0.62)
Long (+30) EWZ Nov(22nd) $41 Call @ (-$0.33)

Long (+30) EWZ Dec(20th) $44 Call @ (-$0.68)

Initial Cost Basis: (-$2.93) per spread, initiated Fri, 10/26/2014.

Previous Cost Basis: (-$1.13) per spread.

Adjusted Cost Basis: (-$0.87) per spread.

Plan:
1. Hold positions through next week Expiry. {see attached #5 for P/L Post Adjs}
2. Consider possible Adjustment zones at $38.5 and $43.5.

I am still bullish on EWZ on the basis of the Monthly Triple Bottom formation and bullish divergence (MACD). {see attached #3, #4}

I understand and accept that I probably will need to extend the campaign as originally designed out to a couple of months longer in duration and temporarily increasing the Adj Cost Basis again.

Any questions and/or comments?

Best regards,

WklyOptions
 

Attachments

  • EWZ - $39.65 - TOS PL- Graph - Pre Adjs - ACB (-$1.13) - Posted T2W.png
    EWZ - $39.65 - TOS PL- Graph - Pre Adjs - ACB (-$1.13) - Posted T2W.png
    21.4 KB · Views: 205
  • EWZ - $39.65 - TOS PL- Graph - Post Adjs - ACB (-$0.87) - Posted T2W.png
    EWZ - $39.65 - TOS PL- Graph - Post Adjs - ACB (-$0.87) - Posted T2W.png
    87.4 KB · Views: 117
  • EWZ - $39.65 - TOS Mtrx - Rolled Dn & Out - Nov2(14th) to Nov(22nd) - Net Credit (+$0.26) - Post.png
    EWZ - $39.65 - TOS Mtrx - Rolled Dn & Out - Nov2(14th) to Nov(22nd) - Net Credit (+$0.26) - Post.png
    40.4 KB · Views: 170
  • EWZ - $39.65 - TOS 6 Scrns - Key Support at $38.30 - Posted T2W.png
    EWZ - $39.65 - TOS 6 Scrns - Key Support at $38.30 - Posted T2W.png
    196.4 KB · Views: 128

WklyOptions

Well-known member
269 24
EWZ $40.23 - Adjustment b/c Bounce off Dbl & Triple Bottoms

Current Positions:

Short (-30) EWZ Nov(22nd) $40 Call @ (+$0.62)
Long (+30) EWZ Nov(22nd) $41 Call @ (-$0.33)

Long (+30) EWZ Dec(20th) $44 Call @ (-$0.68)

Initial Cost Basis: (-$2.93) per spread, initiated Fri, 10/26/2014.

Previous Cost Basis: (-$1.13) per spread.

Adjusted Cost Basis: (-$0.87) per spread.

Good morning, T2W traders,

Early adjustment on EWZ as it bounced off Key Resistance and Double Bottom Weekly & Monthly charts - plus - Triple Bottom off the Daily Chart. I will post a very UNIQUE FIBONACCI Retracement analysis & tool in a separate post.

Note that there are 32 daily bars between the 1st bottom to the 3rd bottom zone on the Daily chart. So I will need at least a 60-day duration campaign yet.

This Adjustment is designed to add bullish torque in case EWZ can hit $44-$45. :idea: Today's Adjustment = roll down and out the back month leg. :whistling

Here is this morning's EWZ adjustment:

Adjustments:

Sold to Close (-30) EWZ Dec(20th) $44 Call @ (+$0.33)
Bought to Open (+30) EWZ Jan 2015(17th) $42 Call @ (-$1.04)
@ Net Debit (-$0.71)

Current Positions:

Short (-30) EWZ Nov(22nd) $40 Call @ (+$0.62)
Long (+30) EWZ Nov(22nd) $41 Call @ (-$0.33)

Long (+30) EWZ Jan 2015(17th) Call @ (-$1.04)

Initial Cost Basis: (-$2.93) per spread, initiated Fri, 10/26/2014.

Previous Cost Basis: (-$0.87) per spread.

Adjusted Cost Basis: (-$1.58) per spread. :cool: :whistling

Plan:
1. HOLD positions to expiry this week.
2. Look to roll and Adj short Nov(22nd) $40 Call options towards Fri expiry.

Regards,

WklyOptions
 

Attachments

  • EWZ - $40.29 - TOS 6 Scrns - Dbl Btm Zone - Need to Adj Add Bullish Torque.png
    EWZ - $40.29 - TOS 6 Scrns - Dbl Btm Zone - Need to Adj Add Bullish Torque.png
    181.9 KB · Views: 149
  • EWZ - $40.29 - TOS Mtrx - Roll Dn & Out - Net Debit (-$0.71) - Posted T2W.png
    EWZ - $40.29 - TOS Mtrx - Roll Dn & Out - Net Debit (-$0.71) - Posted T2W.png
    41.6 KB · Views: 142
  • EWZ - $40.23 - TOS PL Graph - Pre Adj - Posted T2W.png
    EWZ - $40.23 - TOS PL Graph - Pre Adj - Posted T2W.png
    20.4 KB · Views: 126
  • EWZ - $40.23 - TOS PL Graph - Post Adj - Posted T2W.png
    EWZ - $40.23 - TOS PL Graph - Post Adj - Posted T2W.png
    18.2 KB · Views: 125

WklyOptions

Well-known member
269 24
11/28/2014 - EWZ $41.85. Adj Cost Basis (+$0.51)

Current Positions: :cool:

Short (-30) EWZ Nov2(14th) $41 Call @ (+$0.82)
Long (+30) EWZ Nov2(14th) $42 Call @ (-$0.45)

Long (+30) EWZ Dec(20th) $44 Call @ (-$0.68)

Initial Cost Basis: (-$2.93) per spread, initiated Fri, 10/26/2014.

Previous Cost Basis: (-$2.53) per spread.

Adjusted Cost Basis: (-$1.13) per spread. (y)

Hi, T2W Traders,

Sorry for the late two postings on EWZ. Just been so busy with travels and spending some family time into the Thanksgiving wknd! :whistling

I hope all of you had a terrific Thanksgiving celebration w family and friends! :p

Let me do a bit of catching up here by posting my EWZ Trade Adjs from (11/13/2014). These Trade Adjs were posted in a blog forum back on 11/13/2014 - and some of the T2W traders here I know can support me on this post.

======================================================
Here were the Adjustments on 11/13/2014 post: EWZ = $39.65

Bought to Close (-30) EWZ Weekly Nov2(14th) $41 Call @ (-$0.05)
Sold to Close (+30) EWZ Weekly Nov2(14th) $42 Call @ (+$0.02)
@ Net Debit (-$0.03)

Sold to Open (-30) EWZ Nov(22nd) $40 Call @ (+$0.62)
Bought to Open (+30) EWZ Nov(22nd) $41 Call @ (-$0.33)
@ Net Credit (+$0.29)

Net Net Credit = (+$0.26)

Current Positions:

Short (-30) EWZ Nov(22nd) $40 Call @ (+$0.62)
Long (+30) EWZ Nov(22nd) $41 Call @ (-$0.33)

Long (+30) EWZ Dec(20th) $44 Call @ (-$0.68)

Initial Cost Basis: (-$2.93) per spread, initiated Fri, 10/26/2014.

Previous Cost Basis: (-$1.13) per spread.

Adjusted Cost Basis: (-$0.87) per spread.
=====================================

Next were Adjs from 11/19/2014: EWZ = $40.29

Sold to Close (-30) EWZ Dec(20th) $44 Call @ (+$0.33)
Bought to Open (+30) EWZ Jan 2015(17th) $42 Call @ (-$1.04)
@ Net Debit (-$0.71)

Current Positions:

Short (-30) EWZ Nov(22nd) $40 Call @ (+$0.62)
Long (+30) EWZ Nov(22nd) $41 Call @ (-$0.33)

Long (+30) EWZ Jan 2015(17th) Call @ (-$1.04)

Initial Cost Basis: (-$2.93) per spread, initiated Fri, 10/26/2014.

Previous Cost Basis: (-$0.87) per spread.

Adjusted Cost Basis: (-$1.58) per spread. I added some small Risk back into the campaign as part of a trade-off for more time and more bullish torque.
===============================================================

These were the Adjs on 11/21/2014: EWZ = $43.91

Adjustments (several):

Bought to Close (+30) EWZ Nov(22nd) $40 Call @ (-$3.95)
Sold to Open (-30) EWZ Nov(22nd) $44 Call @ (+$0.12)
Net Debit (-$3.43)

Sold to Open (-30) EWZ Nov4(29th) $44 Call @ (+$0.87)
Bought to Open (+30) EWZ Nov4(29th) $45 Call @ (-$0.47)
Net Credit (+$0.40)

Sold to Close (-30) EWZ Jan 2015(17th) $42 Call @ (+$2.93)
Bought to Open (+30) EWZ Jan 2015(17th) $47 Call @ (-$0.76)
Net Credit (+$2.17)

Net Net Debit (-$0.86)

Current Positions:

Long (+30) EWZ Nov(22nd) $41 Call @ (-$0.33)
Short (-30) EWZ Nov(22nd) $44 Call @ (+$0.11)

Short (-30) EWZ Nov4(29th) $44 Call @ (+$0.87)
Long (+30) EWZ Nov4(29th) $45 Call @ (-$0.47)

Long (+30) EWZ Jan 2015(17th) Call @ (-$1.04)

Initial Cost Basis: (-$2.93) per spread, initiated Fri, 10/26/2014.

Previous Cost Basis: (-$1.58) per spread.

Adjusted Cost Basis: (-$2.44) per spread.
======================================================

On 11/21/2014 - EWZ expired at $43.95. The Nov(22nd) $41/$44 Call spread generated a Net Credit (on 11/22/2014) for (+$2.95).

Then the Adjusted Cost Basis was: (+$0.51) per spread.
======================================================

On 11/28/2014 - EWZ settled at $41.85. The Nov(29th) $44/$45 Call spread expired Out of the Money.

Current Positions:

Long (+30) EWZ Jan 2015(17th) Call @ (-$1.04)

Initial Cost Basis: (-$2.93) per spread, initiated Fri, 10/26/2014.

Previous Cost Basis: (-$2.44) per spread.

Adjusted Cost Basis: (+$0.51) per spread.

Plan:

1. Continue the EWZ campaign for a while yet. EWZ has more upside left.
2. Consider generating a Short Call Credit Spread next week.

I hope every trader here has a wonderful, safe Black Fri thru Cyber Mon wknd! (y)

Time to take advantage of your "retailer's EDGE" by going after those huge bargains! :clap:

Again - sorry for the missed updates on Adjs. Will try to do better for the rest of the Dec 2014 period. (y)

Best regards,

WklyOptions
 

WklyOptions

Well-known member
269 24
EWZ $38.56 - at Daily Triple Bottom - New Cost Basis (+$0.77)

On 11/28/2014 - EWZ settled at $41.85. The Nov(29th) $44/$45 Call spread expired Out of the Money.

Current Positions:

Long (+30) EWZ Jan 2015(17th) Call @ (-$1.04)

Initial Cost Basis: (-$2.93) per spread, initiated Fri, 10/26/2014.

Previous Cost Basis: (-$2.44) per spread.

Adjusted Cost Basis: (+$0.51) per spread.

Hi, T2W Traders,

New update on EWZ campaign - the EWZ price action is now hovering at Key Support in the $38.50 zone (attached #1). It has formed a Key Daily Triple Bottom formation (panel lower left) - plus a Monthly Double Bottom Formation (panel lower right) - both time frames having a significant Price vs MACD Bullish Divergence pattern.

In addition if you focus on the attached chart #1 - left lower panel = Daily chart - you will see that the Most Recent Daily Price Swing (up to down) has a larger amplitude compared to previous up/down Daily price swings. This is a potential sign of institutional accumulation into Key Support levels.

So what is the plan for this EWZ campaign now?

1. I will continue to wait and remain patient for the anticipated upside move to test Key Resistance at $43.50-$44 levels. If and when this happens - I will look to exit the EWZ campaign.

Today's Adjustment is done to collect some weekly income: (attached #2)

Sold to Open (-30) EWZ Dec2(13th) $39 Call @ (+$0.40)
Bought to Open (+30) EWZ Dec2(13th) $40 Call @ (-$0.14)
@ Net Credit (+$0.26)

Current Positions:

Short (-30) EWZ Dec2(13th) $39 Call @ (+$0.40)
Long (+30) EWZ Dec2(13th) $40 Call @ (-$0.14)

Long (+30) EWZ Jan 2015(17th) Call @ (-$1.04)

Initial Cost Basis: (-$2.93) per spread, initiated Fri, 10/26/2014.

Previous Cost Basis: (+$0.51) per spread.

Adjusted Cost Basis: (+$0.77) per spread.

Plan:
1. Continue to extract extrinsic time value until the next bullish divergence upside momentum move. This will be foreshadowed by a strong hourly chart price action.
2. Note also that the Net Credit (+$0.26) on Margin of (-$0.74) is a potential Ret on Margin of (+35%) which is very good for a credit spread of 4 days duration.

Best regards,

WklyOptions
 

Attachments

  • EWZ - $38.66 - TOS 6 Scrns - Posted T2W.png
    EWZ - $38.66 - TOS 6 Scrns - Posted T2W.png
    204.6 KB · Views: 124
  • EWZ - $38.66 - TOS Mtrx - Net Credit (+$0.26) - Posted T2W.png
    EWZ - $38.66 - TOS Mtrx - Net Credit (+$0.26) - Posted T2W.png
    37.6 KB · Views: 125

WklyOptions

Well-known member
269 24
EWZ $35.67 - Expiry Fri - Add New Wkly Credit Sprd - New Cost Basis (+$1.05)

Current Positions:

Short (-30) EWZ Dec2(13th) $39 Call @ (+$0.40)
Long (+30) EWZ Dec2(13th) $40 Call @ (-$0.14)

Long (+30) EWZ Jan 2015(17th) Call @ (-$1.04)

Initial Cost Basis: (-$2.93) per spread, initiated Fri, 10/26/2014.

Previous Cost Basis: (+$0.51) per spread.

Adjusted Cost Basis: (+$0.77) per spread.

Hi, T2W traders,

Today being Expiry Fri for the Weekly Options means it's time to ADD another NEW Weekly Options Call Credit Spread --> after all, getting more cash credit income every week is most enjoyable! :clap:

The Dec2(13th) $39/$40 Call spread is Out of the Money.

The EWZ chart pattern indicates that the Key Support has been taken out - and now the next downside Key Support target zone is the $33 level.

For now - the Jan $42 Call is pretty much out at a bid of only ($0.05). However, in the meantime, this campaign will continue to generate cash credit income by selling the front weekly At the Money call credit spread as often as possible.

If EWZ begins to show a basing support pattern on the Daily chart - then the Jan $42 Call option may be rolled down to a closer Strike price.

Today's Adjustment = Add new front weekly call credit income spread:

Sold to Open (-30) EWZ Dec(20th) $36 Call @ (+$0.50)
Bought to Open (+30) EWZ Dec(20th) $37 Call @ (-$0.22)
@ Net Credit (+$0.28)

Current Position:

Short (-30) EWZ Dec2(13th) $39 Call @ (+$0.40) = Out of the Money Expiry
Long (+30) EWZ Dec2(13th) $40 Call @ (-$0.14) = Out of the Money Expiry

Sold to Open (-30) EWZ Dec(20th) $36 Call @ (+$0.50)
Bought to Open (+30) EWZ Dec(20th) $37 Call @ (-$0.22)
@ Net Credit (+$0.28)

Long (+30) EWZ Jan 2015(17th) Call @ (-$1.04)

Initial Cost Basis: (-$2.93) per spread, initiated Fri, 10/26/2014.

Previous Cost Basis: (+$0.77) per spread.

Adjusted Cost Basis: (+$1.05) per spread.

Plan:
1. Continue to extract extrinsic time value until the next bullish divergence upside momentum move. This will be foreshadowed by a strong hourly chart price action.
2. Note also that the Net Credit (+$0.28) on Margin of (-$0.72) is a potential Ret on Margin of (+39%) which is very good for a credit spread of 1 wk duration.

Have a great weekend, traders! (y)

Best regards,

WklyOptions
 

WklyOptions

Well-known member
269 24
EWZ Exited - ROI (+36.5%) 7 Wks - Next Campaign...

Current Position:

Sold to Open (-30) EWZ Dec(20th) $36 Call @ (+$0.50)
Bought to Open (+30) EWZ Dec(20th) $37 Call @ (-$0.22)

Long (+30) EWZ Jan 2015(17th) Call @ (-$1.04)

Initial Cost Basis: (-$2.93) per spread, initiated Fri, 10/26/2014.

Previous Cost Basis: (+$0.77) per spread.

Adjusted Cost Basis: (+$1.05) per spread.

EWZ $36.01

Hi, traders,

The EWZ campaign was exited this week after Friday's Expiry. The primary reason for exiting this campaign is because the Daily chart Double Bottom formation with bullish MACD divergence (at the time of the Dbl Btm) has been disqualified.

EWZ remains in a bearish trend/momentum bias - even as the Monthly chart is indicating a bullish Price vs MACD divergence. However - in order to exploit this Monthly bullish divergence, I have to wait until I get some serious bullish indications from the lower time frames including the Daily and Wkly charts.

Exit Adjustments:

Short (-30) EWZ Dec(20th) $36 Call - expired In the Money @ $36.01.
Long (+30) EWZ Dec(20th) $37 Call - expired Out of the Money.
Net Debit (-$0.01)

Sold to Close (-30) EWZ Jan(17th) Call @ (+$0.03)
Net Credit (+$0.03)

Initial Cost Basis: (-$2.93) initiated Friday, 10/26/2014.

Previous Cost Basis: (+$1.05)

Final Cost Basis: (+$1.07)

Final Return: (+36.5%) over 7 weeks. (y)

Lessons Learned Debriefing:

1. EWZ had two short bullish momentum bursts on 10/28 and 11/18/2014. However the Daily time frame could not overcome the more aggressive bearish momentum from the Weekly time frame. Since the EWZ campaign is aligned primarily for a bullish run = it was best to exit the campaign for now. :smart:

2. Look to wait for another strong Daily or Wkly chart pattern for a possible new bullish momentum move for EWZ (still biased bullish because of the Monthly Price vs MACD bullish divergence pattern).

3. Final ROI = (+36.5%) in 7 wks is less than desired Target of (+70%). (y)

4. Next campaign! :smart:

Happy Holidays & Merry Xmas! :clap:

WklyOptions
 

Attachments

  • EWZ - $36.01 - TOS 6 Scrns - Exit - Wkly Mthly Charts Still Bearish - ROI (+36.5%) 7 wks - Poste.png
    EWZ - $36.01 - TOS 6 Scrns - Exit - Wkly Mthly Charts Still Bearish - ROI (+36.5%) 7 wks - Poste.png
    177.9 KB · Views: 140
 
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