THE WEEK AHEAD: INDA, GDXJ, XBI, XOP; X, AMD EARNINGS
Pictured here is an INDA (66/29) short strangle in the June cycle set up around the 25 delta strikes. Paying 1.00 at the mid, it has break evens of 32.00/39.00, a buying power effect of 5.65, and delta/theta metrics of .68/1.98. Unfortunately, it doesn't have the tightest markets, so expect a little price discovery should you want to get a fill.
On the remainder of the exchange-traded fund front, GDXJ (54/30), XBI (25/28), and XOP (25/32) round out the top symbols ordered by rank; XOP (25/32), OIH (27/31), GDXJ (54/30), and EWZ (14/30) are the top symbols ranked by 30-day implied.
Because I don't have any gold on at the moment, I'm leaning toward putting something on in GDXJ: the June 21st 28/33 short strangle is paying .97 at the mid with 27.03/33.97 break evens, a 3.90 buying power effect, and delta/theta figures of .13/1.92.
And while we're well into earnings, nothing stunning pops to the forefront with ideal volatility contraction metrics, AMD and X appear to be the most amenable to that type of play with >50% 30-day. AMD (48/67) announces on Tuesday after market close, and the down-trodden X (54/56) announces on Thursday after market close. Both are also small enough to either short straddle or go 30 delta short strangle.
On the remainder of the exchange-traded fund front, GDXJ (54/30), XBI (25/28), and XOP (25/32) round out the top symbols ordered by rank; XOP (25/32), OIH (27/31), GDXJ (54/30), and EWZ (14/30) are the top symbols ranked by 30-day implied.
Because I don't have any gold on at the moment, I'm leaning toward putting something on in GDXJ: the June 21st 28/33 short strangle is paying .97 at the mid with 27.03/33.97 break evens, a 3.90 buying power effect, and delta/theta figures of .13/1.92.
And while we're well into earnings, nothing stunning pops to the forefront with ideal volatility contraction metrics, AMD and X appear to be the most amenable to that type of play with >50% 30-day. AMD (48/67) announces on Tuesday after market close, and the down-trodden X (54/56) announces on Thursday after market close. Both are also small enough to either short straddle or go 30 delta short strangle.