THE WEEK AHEAD: KBH, DAL, ICLN, SLV, EWZ, KRE, XLE, IWM/RUT
EARNINGS:
There aren't a ton of earnings next week. Some financials are announcing, but I generally don't play those a ton for volatility contraction, since they never really frisk up that much, and all are below 50% 30-day implied here. KBH provides the best bang for your buck with the implied metrics I'm generally looking for (>50%), followed by DAL. Both, however, are at the low end of their 52-week range, in part due to the massive vol spike we experienced in March, which will make that metric somewhat misleading here.
KBH (18/56/14.5%),* Tuesday after market close.
DAL (7/53/12.9%), Wednesday before market open.
C (17/44/9.8%), Friday before market open.
JPM (14/32/7.8%), Friday before market open.
WFC (22/44/10.6%), Friday before market open.
EXCHANGE-TRADED FUNDS RANKED BY PERCENTAGE THE FEBRUARY 19TH AT-THE-MONEY SHORT STRADDLE IS PAYING AS A FUNCTION OF STOCK PRICE:
ICLN (14/79/20.0%)
SLV (31/48/11.3%)
EWZ (16/44/10.6%)
XLE (22/41/10.2%)
KRE (17/42/9.9%)
BROAD MARKET:
Pictured here is an IWM short put out in March at the strike paying at least 1% of the strike in credit. An IRA trade, I would look to roll up intraexpiry to lock in realized gain with >45 days 'til expiry, take profit on approaching worthless (<.20), and sell call against if assigned. Currently 67 days 'til expiry, it is understandably a bit long in duration, but I already have some on in the February monthly.
IWM (26/34/7.6%)
QQQ (21/31/6.9%)
DIA (14/24/5.2%)
SPY (11/24/5.0%)
EFA (14/21/4.7%)
* -- The first metric is the implied volatility rank or percentile (i.e., where implied is relative to where it's been over the past 52 weeks); the second, the 30-day implied volatility; and the third, what the at-the-money short straddle is paying as a function of the stock price.
There aren't a ton of earnings next week. Some financials are announcing, but I generally don't play those a ton for volatility contraction, since they never really frisk up that much, and all are below 50% 30-day implied here. KBH provides the best bang for your buck with the implied metrics I'm generally looking for (>50%), followed by DAL. Both, however, are at the low end of their 52-week range, in part due to the massive vol spike we experienced in March, which will make that metric somewhat misleading here.
KBH (18/56/14.5%),* Tuesday after market close.
DAL (7/53/12.9%), Wednesday before market open.
C (17/44/9.8%), Friday before market open.
JPM (14/32/7.8%), Friday before market open.
WFC (22/44/10.6%), Friday before market open.
EXCHANGE-TRADED FUNDS RANKED BY PERCENTAGE THE FEBRUARY 19TH AT-THE-MONEY SHORT STRADDLE IS PAYING AS A FUNCTION OF STOCK PRICE:
ICLN (14/79/20.0%)
SLV (31/48/11.3%)
EWZ (16/44/10.6%)
XLE (22/41/10.2%)
KRE (17/42/9.9%)
BROAD MARKET:
Pictured here is an IWM short put out in March at the strike paying at least 1% of the strike in credit. An IRA trade, I would look to roll up intraexpiry to lock in realized gain with >45 days 'til expiry, take profit on approaching worthless (<.20), and sell call against if assigned. Currently 67 days 'til expiry, it is understandably a bit long in duration, but I already have some on in the February monthly.
IWM (26/34/7.6%)
QQQ (21/31/6.9%)
DIA (14/24/5.2%)
SPY (11/24/5.0%)
EFA (14/21/4.7%)
* -- The first metric is the implied volatility rank or percentile (i.e., where implied is relative to where it's been over the past 52 weeks); the second, the 30-day implied volatility; and the third, what the at-the-money short straddle is paying as a function of the stock price.