EWZ Iron Condor — 2026-09-18

EWZ (iShares MSCI Brazil ETF): options flow was balanced/mixed, IV rank 61 (elevated). Our gamma model reads EWZ in a POSITIVE-gamma regime (net GEX 35.5M, flip —) — dealers are long gamma and suppress realized vol, so price tends to pin/mean-revert between the $37 put wall (support) and $38 call wall (resistance). Structured as a Iron Condor (sell $37P / buy $36.5P / sell $38C / buy $38.5C) expiring 2026-09-18 (14 DTE) — positive-gamma range → iron condor between the walls. Net credit $35, max loss $15 (defined risk). Breakevens $36.66 and $38.35.

Underlying: EWZ @ ~$37.86 | 2026-09-18 (14 DTE) | Net credit (entry): ~$35 per condor/fly. Use limit orders at the mid or slightly better.

ENTRY: Sell the $37/$36.5 put spread AND the $38/$38.5 call spread as ONE iron condor order, expiring 2026-09-18 (14 DTE), at a LIMIT of the mid or better — target credit $35. IV rank 61 is elevated — premium is rich, a good backdrop to SELL; any vol contraction adds to the win. Ideal when flow is two-sided/low-conviction and IV is rich. Anchor the short strikes just OUTSIDE the $37 put wall / $38 call wall so both walls sit between your shorts. | TAKE PROFIT: Buy the condor back to LOCK IN gains at ~50% of the $35 max credit (close near $18 remaining) — condors rarely pay to hold for the last dimes. Also close on TIME: exit around 21 DTE regardless of P&L to sidestep the late-cycle gamma/pin risk near EWZ's short strike(s) — currently 14 DTE, so plan the exit 0 day(s) out. Profit zone is $36.66–$38.35; both breakevens must hold. | IF TESTED: Defend ONE side at a time. When either short is tested (delta ~0.30) or a side's loss ≈$70, ROLL THE UNTESTED SIDE closer to price to collect more credit and re-center (e.g. if EWZ rallies into the $38 call, roll the $37 put up toward the money). If price keeps running, roll the TESTED spread out ~7–14 days for a credit, or go INVERTED (roll the tested short past the other short) as a last resort. dealer gamma is POSITIVE (vol-suppressing) — spot tends to pin/mean-revert, so a briefly-tested strike often reverts; don't over-adjust on the first touch; put wall (support) at $37; call wall (resistance) at $38. Treat a close above the $38 call wall as the hard trigger to act (the resistance magnet has broken) on the upside; Treat a close below the $37 put wall as the hard trigger to act (the pin support has failed) on the downside. If a wing goes fully in-the-money, that side is at max loss ($15) — take it and keep the winning side. | MAXIMIZE: If EWZ sits mid-range and both sides decay, roll the nearer (winning) short in toward price to harvest extra premium and tighten the tent, or once ~50% is captured close the profitable side and let the other run. Extend duration only after most credit is banked.