NaughtyPines

THE WEEK AHEAD: AMD, BA EARNINGS; GDXJ, XOP, SLV PREMIUM SELLING

NASDAQ:AMD   Advanced Micro Devices Inc
EARNINGS:

-- PROBABLY PLAYING:

AMD (38/71/15.4%) announces on Tuesday after market close.
BA (25/71/15.1%) announces Wednesday before market open.

Pictured here is an AMD August 21st delta neutral 60/85 short strangle paying 2.93 as of Friday close.

The BA August 21st 150/210 was paying 7.23 at the mid.

Naturally, strikes may need adjustment running into earnings , depending on how prices move in the early part of the week. If of a defined risk bent, look to sell iron condors with break evens wide of the expected move* and that pay greater than one-third the width of the wings. Examples: AMD August 21st 57.5/62.5/80/85, paying 1.99 (a little more aggressive delta-wise than I would usually go, but you've got 5-wides to deal with on the call side, at least as of the writing of this post); BA August 21st 140/150/200/210, paying 3.30 (but prices showing wide in the off hours).

-- WATCHING FOR POTENTIAL RAMP-UP IN IMPLIED:

EBAY ( 40 /46), Tuesday after market close.
SBXUX (22/28), Tuesday after market close.
QCOM (27/46), Wednesday after market close.
PYPL (43/52), Wednesday after market close.
FB (37/46), Wednesday after market close.
AAPL (24/39), Thursday after market close.
GOOG (36/38), Thursday after market close.
XOP (27/43), Frida before market open.


EXCHANGE-TRADED FUNDS ORDERED BY RANK AND SCREENED FOR 30-DAY IMPLIED >35%/AT-THE-MONEY SHORT STRADDLE (SEPTEMBER) PAYING >10% OF THE STOCK PRICE:

SLV (43/54/14.3%)
XLE (27/42/12.5%)
GDXJ (21/56/16.2%)
EWZ (21/48/13.4%)
GDX (18/43/12.8%)
XOP (14/54/15.8%

GDXJ , XOP , and SLV appear to paying the most relative to stock price.


BROAD MARKET ORDERED BY RANK AND SCREENED FOR AT-THE-MONEY SHORT STRADDLE (SEPTEMBER) PAYING >10% OF THE STOCK PRICE:

IWM , SPY , QQQ , and EFA are all paying <10% of the stock price.


IRA DIVIDEND-PAYERS SCREENED FOR 30-DAY IMPLIED >35%/AT-THE-MONEY SHORT STRADDLE (SEPTEMBER) PAYING >10% OF THE STOCK PRICE:

EWZ (21/48/13.4%)

* -- Expected move is generally 85% of what the short straddle price is paying. For example, the BA July 31st 175 short straddle was paying 13.15 as of Friday close. 85% of that is 11.18, so options are pricing in a +/- $11.18 move through Friday's expiry which would's BA's expected move between 162.58 and 184.94.

Comments

SLV been going crazy lately!

I do worry about AMD after that big INTC miss on delay news
+2 Reply
@420snoop, The up move in AMD is probably overdone, but skew says the market is leaning toward more upside. Naturally, the market isn't always right. SLV may have way more potential for upside relative to GLD (compare distance to 2011 highs in GLD vs. SLV). I personally thought that the train had left the station for SLV and that it was potentially "too late" to get in. I dunno now; it's seems to have "the mo" ... .
+1 Reply
Anothe good one! Thanks again!
Reply
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Referred friends Coins My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out