FXI – Directional Calendar


Click here to view the PL diagram, Greeks & price chart.
– FXI (IShares FTSE China 25 Index Fund)is at it’s 200 SMA.   also, hitting an area of resistance.  The last daily candle shows indecision after a strong move up.
– Looking to play the downside via a directional calendar, if price action indicates further weakness.
Short 10xOct 34 PUTS
Long 10xNov 34 PUTS
Max Loss = $340
Max profit =~ $565
The number of contracts being traded can be adjusted based on how large of a trade one wants to put on.
Would look for around a 15% return on risk i.e. 15% of Max Loss after commissions.
Advertisements
This entry was posted in Calendar, FXI, Options. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s