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INDA

THE WEEK AHEAD: INDA, GDXJ, XBI, XOP; X, AMD EARNINGSPictured here is an INDA (66/29) short strangle in the June cycle set up around the 25 delta strikes. Paying 1.00 at the mid, it has break evens of 32.00/39.00, a buying power effect of 5.65, and delta/theta metrics of .68/1.98. Unfortunately, it doesn't have the tightest markets, so expect a little price discovery should you want to get a fill. On the remainder of the exchange-traded fund front, GDXJ (54/30), XBI (25/28), and XOP (25/32) round out the top symbols ordered by rank; XOP (25/32), OIH (27/31), GDXJ (54/30), and EWZ (14/30) are the top symbols ranked by 30-day implied. Because I don't have any gold on at the moment, I'm leaning toward putting something on in GDXJ: the June 21st 28/33 short strangle is paying .97 at the mid with 27.03/33.97 break evens, a 3.90 buying power effect, and delta/theta figures of .13/1.92. And while we're well into earnings, nothing stunning pops to the forefront with ideal volatility contraction metrics, AMD and X appear to be the most amenable to that type of play with >50% 30-day. AMD (48/67) announces on Tuesday after market close, and the down-trodden X (54/56) announces on Thursday after market close. Both are also small enough to either short straddle or go 30 delta short strangle.
AMEX:INDA
by NaughtyPines
India set upWithin the interest rate cycle all countries are at different phases, Japan is the leader followed by Europe followed by USA followed by Emerging Markets. With an interest rate around 6.2% they are far from the lower band thus behind the USA in the cycle. Since the USA had rates around 6.2% coming down from 8% in the 1990s we can assume this is about where India is in the cycle. I view it as effectively buying the SP500 in 1990 which we know was a good trade. I am not expecting returns of that magnitude and I do understand many of the issues India is facing but it's when times are bleak is when you want to buy. Technically we could be retesting the top of the down channel and the 0.786 fib. However, I can see the HS from 2013 to today but there is a large amount of volume coming in here so i believe if it breaks that 3 year trend-line we could be in trouble but if it breaks the 0.5 fib I don't think 35-40 will be an issue, in a multi year time frame.
BATS:INDALong
by UnknownUnicorn103267