RSX (Market Vectors Russia) – Short Strangle


RSX Implied Volatility @ upper end of range.  Looking to sell premium.
Note: Price down over 10% in the last 2 weeks, possibly triggered by Ukraine jitters.
SELL -10 STRANGLE RSX 100 APR 14 26/19 CALL/PUT @.45 LMT  (# of contracts to be tailored to match desired position size)
Short Strikes =~ 86% OTM
Probability of profit for strangle =~ 75%
Expected return on capital over a 40 day period (if held to expiration) = 420/2500 =~ 16.8%

RSX

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This entry was posted in ETF, Options, Premium Selling, RSX, Short Strangle. Bookmark the permalink.

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