Sold 1 Put on EWZ Brazil ETF – 0.8% potential income return in 14 days
On January 5, 2024, I sold additional 1 put option on EWZ Ishares Msci Brazil ETF (NYSEARCA: EWZ) with a strike price of $33.5 and expiry on January 12, 2024. For this trade setup, I was rewarded with $12 (after commissions).
I have been in this trade since December 29, 2023, when spontaneously decided to trade this ticker for at least one year, while planning our 2024 vacation in Brazil
This is not trading advice. Investments in stocks, funds, bonds, or cryptos are risk investments and you could lose some or all of your money. Do your due diligence before investing in any kind of asset.
Here is the trade setup:
SLD 1 EWZ Jan 12 '24 33.5 Put Option 0.13 USD
What happens next?
On the expiry date, January 12 , 2024, EWZ is trading above $33.5 per share - options expire worthlessly and I keep premium - if EWZ trades under $33.5 on the expiry date, I risk getting assigned 100 shares and paying for them $3,350
Current break-even price: 33.5-0.16-0.12 = $33.22
In case of an assignment, I will turn this trade into a wheel strategy and will start selling covered calls.
Anyhow, if troubled with the strike price near the expiry, I will try to roll it forward and down, preferably for credit, before actually taking the stock assignment.
In total: 2 trades since December 29, 2023
Options premium: $27