EWZ Short Put — Nov 20, 2026
Trade Setup
Current Stock Price
$87.50
Entry Price
$87.50
Target Price
$43.75
Stop Loss
$175.00
Expiration
Nov 20, 2026
Suggested Contracts
1
Strike Details
Sell 35P
Risk / Reward
Max Loss
$3412.50
Max Profit
$87.50
Analysis
EWZ (iShares MSCI Brazil ETF) presents a short put opportunity with very elevated implied volatility. IV Rank 97. IV 6173.0% trades 1356.0pp above 30-day HV (4817.0%). This setup favors net premium sellers.
Sell the $35 put for $0.88 credit. Naked single-leg exposure; collect premium from time decay if EWZ stays above the strike. Underlying ~$41.50, 32 DTE. Max profit $88 per contract, max loss $3413, 2.6% return on risk, 83% POP. Breakeven at $34.13.
Management: take profit at ~50% of max profit ($44). Cut at 2x credit ($175 loss). If short strike is breached with > 14 DTE, consider rolling out for a credit. Close before expiration week to avoid gamma risk.
Setup Instructions
Underlying: EWZ @ ~$41.50 Expiration: Nov 20, 2026 (32 DTE) Net credit (entry): ~$87.50 per spread Legs:
- Sell EWZ Nov 20, 2026 $35 Put (delta -0.17, mid $0.88)
Use limit orders at the mid or slightly worse. Verify bid-ask spread (currently ~1.1% of mid) before sending.
Management Plan
Take profit at 50% of max profit ($44). Cut loss if position reaches 2x credit received ($175 loss). Roll if tested with > 14 DTE remaining.