Trade Ideas | 9/20/18

September 20, 2018

Some more trade ideas today to balance and diversify the portfolio:

 

High Implied Volatility, Delta Neutral

 

$FEYE - this stock is a mover, yes, but an Iron Butterfly for Nov-2 expiration covers about a 12% move in either direction. If the stock does move that far, though, unrealized losses on the position would be negligible. 

 

 

Low Implied Volatility, Delta Neutral

 

$QQQ - with the S&P500 making new all-time highs today, it would surprise some that the NASDAQ isn't. Technology stocks have taken a breather as of late and I expect that to continue. A calendar spread in the Q's is a low risk way to play that assumption.

 

$EEM - I already have some risk in Brazil, an emerging market, but the difference in IV between $EWZ and $EEM is quite large. I expect both ETFs and markets to calm over the next couple of weeks, which would result in declining IV, something that an Iron Butterfly would benefit from.

 

 

Directional Trades

 

$TLRY - If you have balls of steel then go ahead and short this stock. No, just kidding, because there aren't any shares to short and by the time you're done reading this blurb the stock will probably have moved +/- 30 points. It's exciting to watch, though!

 

 

 

 

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