Risk $25 To Make $275 Shorting EEM With Inverted Option Collar

Per 100 shares of EEM
(1) Buy to close Feb 07 $40 EEM Call and Sell to close Feb 07 $43 EEM Put
(2) Sell to open Feb 14 $40 EEM Call and Buy to open Feb 14 $43 EEM Put
Trading is risky, see email for disclaimer. 

Trade Results Week Over Week 

  • EEM Traded from $43.02 to $43.87 (+0.85)
  • Option Collar started at $2.43 credit closed at $3.71 debit (-1.28)
  • Net return of -$0.43 /share or -$43 per contract on 10% of portfolio or -$1,634 on 3800 shares.

Updated P/L on our Tuesday track record:

View Our Tuesday Specific Track Record Here

The top screenshot below shows you how to close last week’s trade, if you’re assigned just sell your put and re-buy your shares of EEM. The second screenshot is today’s new trade alert based on one option contract per 100 shares of EEM.

In our model portfolio for every 100 shares of SPY we hold 200 shares of EEM giving 40% of our portfolio to the SPY and 10% of our portfolio to EEM.

This is your maximum risk vs reward week over week on Emerging Markets which is a maximum gain of 6.25% and a maximum loss of -0.6%.

Open positions in SPY, TLT, GDX 

  • SPY hits max gain $1.60/share or $160/contract as long as we trade over $327 currently $329 using 40% of total portfolio or 1900 shares or $+3,040.
  • TLT started at $143.88 from Jan 27 emergency alert currently trading at 143.67 (-0.21) using 40% of portfolio or 3800 shares -$798.
  • GDX started at $29.10 currently trading at $27.87 (-$1.23) on 10% of portfolio or 3800 shares -$4,674.

View Track Record Summary Here

Our ratio of each ETF is 100 shares of SPY, 200 shares of TLT, 200 shares of EEM and 200 shares of GDX. SPY is traded Monday/Wed/Friday, EEM on Tuesday and TLT/GDX on Thursday.

PORTFOLIO BUILDER

PORTFOLIO BUILDER

If you need help getting our trade alerts or have any other questions please contact us anytime at support@portfoliobuilder.io

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