EARNINGS:
NVDA (31/53/12.2%), announces Wednesday after market close.
WMT (29/33/7.0%), announces Tuesday before market open.
TGT (28/37/8.3%), announces Wednesday before market open.
HD (19/35/7.2%), announces Tuesday before market open.
BABA (43/45/10.5%), announces Thursday before market open.
Pictured here is an NVDA September 18th 400/410/540/550 iron condor, paying 3.28 at the mid price as of Friday close, with the short option aspects camped out around the 19 delta -- very nearly one-third the width of the wings, but off hours pricing is showing wide here, so I'll have to recheck that setup for pricing during the New York session and more toward earnings, since the underlying is likely to move between now and then.
Narrower Winged Alternative: September 18th 405/410/540/545 iron condor, paying 1.68.
Although WMT, TGT, and HD also announce, you can see that they aren't paying a ton relative to their stock price, with the short straddle price paying 10% relative to the stock price kind of being my cut-off.
Potential BABA trades:
September 18th 220/230/285/295, paying 3.08.
September 18th 225/230/285/290, paying 1.67.
EXCHANGE-TRADED FUNDS (SCREENED FOR >35% 30-DAY IMPLIED AND FOR THE AT-THE-MONEY SHORT STRADDLE PAYING >10% OF THE STOCK PRICE):
SLV (57/69/15.8%)
GDX (20/46/11.0%)
GDXJ (20/53/13.1%)
XOP (10/46/10.8%)
The most bang for your buying power effect dollar: SLV, where the September 18th 21/31 short strangle is paying nearly a buck (.98 at the mid price as of Friday close). Here, however, I'll probably lay off adding more September, since there's only 33 days left. And the October cycle is a bit longer than I'd like -- 61 days.
BROAD MARKET:
IWM (23/30/6.4%)
QQQ (23/28/6.3%)
EFA (16/19/4.3%)
SPY (15/21/4.5%)
Mighty thin at the moment, but it's been thinner.
Here's what the 16 delta short strangles are paying in each* in the September cycle:
IWM September 18th 142/169, 2.22 (1.4% relative to stock price)
QQQ September 18th 247/291, 3.96 (1.4% relative to stock price)
SPY September 18th 311/352, 3.80 (1.1% relative to stock price)
* -- EFA strikes aren't granular enough from a delta standpoint to price out a clean 16-delta short strangle.
IRA DIVVY-GENERATORS:
IYR (19/24/5.5%)
EWA (18/26/6.0%)
EWZ (17/43/9.9%)
HYG (17/14/2.6%)
EFA (16/19/4.3%)
XLU (16/20/4.8%)
SPY (15/22/4.5%)
TLT (14/17/3.6%)
EMB (9/9/2.0%)
EWZ (Current Yield 3.35%) still has some juice in it, followed by EWA (Yield 3.55%), and IYR (3.24%). In all likelihood, that first quarter volatility spoiled me for the year ... .
NVDA (31/53/12.2%), announces Wednesday after market close.
WMT (29/33/7.0%), announces Tuesday before market open.
TGT (28/37/8.3%), announces Wednesday before market open.
HD (19/35/7.2%), announces Tuesday before market open.
BABA (43/45/10.5%), announces Thursday before market open.
Pictured here is an NVDA September 18th 400/410/540/550 iron condor, paying 3.28 at the mid price as of Friday close, with the short option aspects camped out around the 19 delta -- very nearly one-third the width of the wings, but off hours pricing is showing wide here, so I'll have to recheck that setup for pricing during the New York session and more toward earnings, since the underlying is likely to move between now and then.
Narrower Winged Alternative: September 18th 405/410/540/545 iron condor, paying 1.68.
Although WMT, TGT, and HD also announce, you can see that they aren't paying a ton relative to their stock price, with the short straddle price paying 10% relative to the stock price kind of being my cut-off.
Potential BABA trades:
September 18th 220/230/285/295, paying 3.08.
September 18th 225/230/285/290, paying 1.67.
EXCHANGE-TRADED FUNDS (SCREENED FOR >35% 30-DAY IMPLIED AND FOR THE AT-THE-MONEY SHORT STRADDLE PAYING >10% OF THE STOCK PRICE):
SLV (57/69/15.8%)
GDX (20/46/11.0%)
GDXJ (20/53/13.1%)
XOP (10/46/10.8%)
The most bang for your buying power effect dollar: SLV, where the September 18th 21/31 short strangle is paying nearly a buck (.98 at the mid price as of Friday close). Here, however, I'll probably lay off adding more September, since there's only 33 days left. And the October cycle is a bit longer than I'd like -- 61 days.
BROAD MARKET:
IWM (23/30/6.4%)
QQQ (23/28/6.3%)
EFA (16/19/4.3%)
SPY (15/21/4.5%)
Mighty thin at the moment, but it's been thinner.
Here's what the 16 delta short strangles are paying in each* in the September cycle:
IWM September 18th 142/169, 2.22 (1.4% relative to stock price)
QQQ September 18th 247/291, 3.96 (1.4% relative to stock price)
SPY September 18th 311/352, 3.80 (1.1% relative to stock price)
* -- EFA strikes aren't granular enough from a delta standpoint to price out a clean 16-delta short strangle.
IRA DIVVY-GENERATORS:
IYR (19/24/5.5%)
EWA (18/26/6.0%)
EWZ (17/43/9.9%)
HYG (17/14/2.6%)
EFA (16/19/4.3%)
XLU (16/20/4.8%)
SPY (15/22/4.5%)
TLT (14/17/3.6%)
EMB (9/9/2.0%)
EWZ (Current Yield 3.35%) still has some juice in it, followed by EWA (Yield 3.55%), and IYR (3.24%). In all likelihood, that first quarter volatility spoiled me for the year ... .
Comment:
Ugh. That NVDA is not as liquid as it used to be, so won't be partaking of a volatility contraction play here.