Here is a list of some of the stocks that make up the $IYR ETF:
A complete list can be found here.
As for my trade, I had been stalking $IYR this week looking for a level where I felt buyers would step in. Here is the trade that I initiated on June 5:
- I am short the June 67/66 Put Spread (1/2 position to start)
- I am short the June 69 Call (1/2 position)
- I am long the July 69 Call (1/2 position)
- This trade was done for a small credit
I later shorted the ETF at 67.5 as a hedge on the short Put spread. I am looking to build a cushion with this hedge to cover any loss that may occur on the short Put Spread piece. Here is a current Daily chart on $IYR:
1) The stock settles in at this $67 level and allows for all the June Option pieces to expire in a few weeks. The small credit would still exit (plus any $ that I can get from the hedge) and would be long July 69 Calls.
2) The stock breaks down further to $65. The June Put Spread loss would be capped at $1 and the hedge would show a profit of $2 so there is some gains in this scenario. The July 69 Calls would exit for any upside move into July.
3) The stock rebounds to $70 by June expiration. The hedge piece would be stopped. It is likely I would adjust the 69 Call Calendar pieces when price approached the $69 level.