EARNINGS:
PDD (72/92): Friday, before market open.
BIDU (81/61): Monday, before market open.
TGT (55/49): Wednesday, after market close.
NVDA (51/62): Thursday, before market open.
LOW (51/63): Wednesday, after market close.
Both PDD and BIDU are ADR's, so look to put on plays post-announcement to catch earnings afterglow, if at all. The dates of their announcements tend to be "soft," meaning they're subject to change, and there's nothing more disconcerting than putting on a volatility contraction play, only to have earnings not occur when they're initially supposed to.
Pictured here is an NVDA short strangle in the June cycle with break evens wide of one standard deviation. Off hours, it's pricing out at 10.35, but markets are wide. Because it's rather large, consider going iron condor, looking to collect at least one third the width of the wings in credit (e.g., the June 19th 275/280/405/410, paying 1.73 at the mid price).
SECTOR EXCHANGE-TRADED FUNDS, ORDERED BY RANK AND SCREENED FOR >30-DAY IMPLIED:
SLV (57/41)
EWW (56/46)
GDXJ (51/61)
SMH (49/49)
GDX (44/51)
XLE (44/52)
EWZ (44/60)
EEM (44/60)
XLU (42/31)
XOP (34/67)
USO (13/78)
BROAD MARKET, ORDERED BY RANK:
IWM (60/47)
TQQQ (53/99)
EEM (43/34)
QQQ (36/32)
SPY (33/31)
IRA DIVIDEND-PAYERS ORDERED BY RANK:
IYR (61/44)
EWA (49/42)
EWZ (44/60)
EEM (43/34)
XLU (42/31)
EFA (38/28)
HYG (34/19)
SPY (33/31)
EMB (27/22)
TLT (24/20)
With acquisitional plays for a retirement account, it's not necessarily "all about the premium"; it's partly about price, so it will pay to look at a few charts to determine which of these are trading at a discount relative to where they've been. That being said, having a higher background implied is of benefit, since it will result in a lower break even relative to strike price than were implied not as high and getting in lower is always better in the retirement account. For instance, I'm not in "acquisition mode" for TLT, not only because of its low implied, but because it's at or near all-time highs, moves inversely to yield, and doesn't necessarily have all that much room to move higher given the current interest rate environment. Conversely, EMB and HYG implied aren't all that great (treasury and/or bond funds are not known for having high volatility, generally), but both got absolutely crushed in the mid-March closely correlated sell-off, so I could see selling out-of-the-money puts in those instruments, assuming they were at levels I'd be comfortable with acquiring. (See HYG, EMB Posts Below).
Granted, these are large ticket items and not everyone is going to be able to go out there and sell a three-rung, SPY 16 delta short put ladder; the price tag is hefty. However, implied metrics can be informational for even those with smaller accounts. At the very least, these metrics are saying: "Look at me. I'm moving", and -- in the vast majority of cases -- they say, I've moved lower and that this may be the time to pick up some shares, even if they're fractional. Over time, fractional shares aggregate into one lots that you can proceed to cover and reduce cost basis more efficiently, as well as generate cash flow on top of dividends.
PDD (72/92): Friday, before market open.
BIDU (81/61): Monday, before market open.
TGT (55/49): Wednesday, after market close.
NVDA (51/62): Thursday, before market open.
LOW (51/63): Wednesday, after market close.
Both PDD and BIDU are ADR's, so look to put on plays post-announcement to catch earnings afterglow, if at all. The dates of their announcements tend to be "soft," meaning they're subject to change, and there's nothing more disconcerting than putting on a volatility contraction play, only to have earnings not occur when they're initially supposed to.
Pictured here is an NVDA short strangle in the June cycle with break evens wide of one standard deviation. Off hours, it's pricing out at 10.35, but markets are wide. Because it's rather large, consider going iron condor, looking to collect at least one third the width of the wings in credit (e.g., the June 19th 275/280/405/410, paying 1.73 at the mid price).
SECTOR EXCHANGE-TRADED FUNDS, ORDERED BY RANK AND SCREENED FOR >30-DAY IMPLIED:
SLV (57/41)
EWW (56/46)
GDXJ (51/61)
SMH (49/49)
GDX (44/51)
XLE (44/52)
EWZ (44/60)
EEM (44/60)
XLU (42/31)
XOP (34/67)
USO (13/78)
BROAD MARKET, ORDERED BY RANK:
IWM (60/47)
TQQQ (53/99)
EEM (43/34)
QQQ (36/32)
SPY (33/31)
IRA DIVIDEND-PAYERS ORDERED BY RANK:
IYR (61/44)
EWA (49/42)
EWZ (44/60)
EEM (43/34)
XLU (42/31)
EFA (38/28)
HYG (34/19)
SPY (33/31)
EMB (27/22)
TLT (24/20)
With acquisitional plays for a retirement account, it's not necessarily "all about the premium"; it's partly about price, so it will pay to look at a few charts to determine which of these are trading at a discount relative to where they've been. That being said, having a higher background implied is of benefit, since it will result in a lower break even relative to strike price than were implied not as high and getting in lower is always better in the retirement account. For instance, I'm not in "acquisition mode" for TLT, not only because of its low implied, but because it's at or near all-time highs, moves inversely to yield, and doesn't necessarily have all that much room to move higher given the current interest rate environment. Conversely, EMB and HYG implied aren't all that great (treasury and/or bond funds are not known for having high volatility, generally), but both got absolutely crushed in the mid-March closely correlated sell-off, so I could see selling out-of-the-money puts in those instruments, assuming they were at levels I'd be comfortable with acquiring. (See HYG, EMB Posts Below).
Granted, these are large ticket items and not everyone is going to be able to go out there and sell a three-rung, SPY 16 delta short put ladder; the price tag is hefty. However, implied metrics can be informational for even those with smaller accounts. At the very least, these metrics are saying: "Look at me. I'm moving", and -- in the vast majority of cases -- they say, I've moved lower and that this may be the time to pick up some shares, even if they're fractional. Over time, fractional shares aggregate into one lots that you can proceed to cover and reduce cost basis more efficiently, as well as generate cash flow on top of dividends.
