Although there are quite a few earnings coming up next week, only two catch my eye from a premium selling standpoint: Twitter and U.S. Steel.
Twitter announces on Wednesday before market open; has a 30-day implied volatility of 75.19%; and the May 4th 20-delta, 74% probability of profit 27.5/38 short strangle is paying 1.28 at the mid with its defined risk counterpart, the 24/27.5/38/41 iron condor paying .87.
US Steel (which can be a mover; 30-day implied 59.6%) announces on Wednesday after market close; and the May 4th 20-delta, 72% probability of profit 33/41 is paying 1.07 with its defined risk counterpart, the 30/33/41/44, paying .69.
On the exchange-traded fund front, nothing looks particularly enticing at the moment. OIH and XOP round out the top of the pile volatility-wise, but their 30-days are sub-35, with other funds trailing off from there, so I'm looking at potentially putting on a couple of directional plays in single names where earnings are in the rear view mirror -- ORCL and IBM and/or in exchange-traded funds where concerns over rising interest rates and/or comparative yield have beaten them down, temporarily or otherwise -- IYR and XLU.
I'll set out those ideas in a separate post, since there are multiple ways in which you can go directional with an options setup in those without hanging up a lot of buying power in actual shares. Additionally, sometimes it can be worth comparing and contrasting various "options options" so that you can decide which strategy suits your preference as to how much you want to devote to the trade ... .
Twitter announces on Wednesday before market open; has a 30-day implied volatility of 75.19%; and the May 4th 20-delta, 74% probability of profit 27.5/38 short strangle is paying 1.28 at the mid with its defined risk counterpart, the 24/27.5/38/41 iron condor paying .87.
US Steel (which can be a mover; 30-day implied 59.6%) announces on Wednesday after market close; and the May 4th 20-delta, 72% probability of profit 33/41 is paying 1.07 with its defined risk counterpart, the 30/33/41/44, paying .69.
On the exchange-traded fund front, nothing looks particularly enticing at the moment. OIH and XOP round out the top of the pile volatility-wise, but their 30-days are sub-35, with other funds trailing off from there, so I'm looking at potentially putting on a couple of directional plays in single names where earnings are in the rear view mirror -- ORCL and IBM and/or in exchange-traded funds where concerns over rising interest rates and/or comparative yield have beaten them down, temporarily or otherwise -- IYR and XLU.
I'll set out those ideas in a separate post, since there are multiple ways in which you can go directional with an options setup in those without hanging up a lot of buying power in actual shares. Additionally, sometimes it can be worth comparing and contrasting various "options options" so that you can decide which strategy suits your preference as to how much you want to devote to the trade ... .