NaughtyPines

WAIT FOR A LITTLE MORE VOL IN COST; THIS WEEK'S EARNINGS PLAY

NASDAQ:COST   COSTCO WHSL CORP NEW
The more IV, the merrier if you're a premium seller. This week's earnings play in COST (Costco; announcing on 9/2 after market close), needs to be "merrier" if I'm going to make a play in it. Although it's IVR             is currently 67 (52-Week TOS), I generally prefer to sell premium in an individual, non-ETF underlying if the IVR             is above 70, and I would generally expect the IVR             to be higher than that around earnings.

When IVR             does pop (preferably to 90+), I'll be looking to either short strangle COST with the short put/call strikes at the 1 SD             or to IC             this same short strangle with long put/call wings 2-3 strikes out from the shorties. I'll look to enter the order virtually at the last minute, shortly before NY close on 9/2, in all likelihood using the Sept 11th expiry (the Sept 4th expiry doesn't afford me enough time for my tastes; two days between entry and expiry is just not enough time).

Assuming I do enter, I'll look to take off the entire setup at 50% max profit ... .
NaughtyPines
a year ago
I don't know if my calendar was wrong, I misread the calendar, or if they delayed their earnings announcement. It's currently scheduled for 9/29 ... .
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