The only volatility contraction earnings play I'm looking at for this coming week is in Macy's, which announces earnings on Wednesday before market open, since it has the implied volatility rank and 30-day metrics I'm looking for (76/56).
Here are some Macy's preliminary setups, with the short strangles set up around the 20 delta strikes:
August 17th 36/44 short strangle, 1.21 credit at the mid, break evens at 34.79/45.21.
September 21st 35/46 short strangle, 1.60 credit at the mid, 33.40/47.60 break evens. (The reason why I'd go with this one over the August is that there isn't much time to manage the August setup if it goes awry).
September 21st 40 short straddle, 5.42 credit at the mid, 34.58/45.42 break evens
Other underlyings with earnings in the rear view/exchange-traded funds:
TSLA (rank 61/30-day 66). I am unsure of whether I will touch this underlying any longer given private equity discussions. These can ruin an options trade if they go through, as well as ruin one if they don't. (See, RAD, like, more than once ... ).
TWTR. The rank isn't great, but there is still some background implied to mine there (41.7%). The Sept 21st 29/36 short strangle is paying 1.06, which isn't shabby for a 32 clam underlying.
X. With a 30-day at 41.4%, the September 21st 27/34's paying .87, the 30 short straddle, 3.06.
EWZ. I've been short straddling this high implied exchange-traded fund, but the 30/38's paying .82 in the Sept cycle if you just can't stand the kind of skewing out the short straddle enjoys every other day with this one ... .
Other Major Food Groups:
TLT: Waiting for 122.50-ish for another bearish assumption setup.
Here are some Macy's preliminary setups, with the short strangles set up around the 20 delta strikes:
August 17th 36/44 short strangle, 1.21 credit at the mid, break evens at 34.79/45.21.
September 21st 35/46 short strangle, 1.60 credit at the mid, 33.40/47.60 break evens. (The reason why I'd go with this one over the August is that there isn't much time to manage the August setup if it goes awry).
September 21st 40 short straddle, 5.42 credit at the mid, 34.58/45.42 break evens
Other underlyings with earnings in the rear view/exchange-traded funds:
TSLA (rank 61/30-day 66). I am unsure of whether I will touch this underlying any longer given private equity discussions. These can ruin an options trade if they go through, as well as ruin one if they don't. (See, RAD, like, more than once ... ).
TWTR. The rank isn't great, but there is still some background implied to mine there (41.7%). The Sept 21st 29/36 short strangle is paying 1.06, which isn't shabby for a 32 clam underlying.
X. With a 30-day at 41.4%, the September 21st 27/34's paying .87, the 30 short straddle, 3.06.
EWZ. I've been short straddling this high implied exchange-traded fund, but the 30/38's paying .82 in the Sept cycle if you just can't stand the kind of skewing out the short straddle enjoys every other day with this one ... .
Other Major Food Groups:
TLT: Waiting for 122.50-ish for another bearish assumption setup.