EEM – 2hr
Miss the run up on SPY and IWM? Here’s a another suggestion. I’m expecting a run into Q1FY17. These are arithmetic fibs, so my targets will likely be adjusted higher when I get my spreadsheet with log-fibs open.
I’m not sure about the timing, but here’s a stupid aggressive trade idea…
Short (sell) some puts, say Mar (Q) or Apr ( EOM ), at 32 or 33 strike. Long (buy) some calls, same expiration, ATM or perhaps as high as the 76.4% extension. This extremely leveraged position would be taken as a lotto…with $$$ you can afford to lose. You’d keep the premium as long as EEM stays over your put strike, which it clearly should if this analysis is correct. This analysis is incorrect under 34.14, and a new set-up would need to form. Could be a deeper 2 of (3), or something much worse.
I currently have no position in EEM .