EARNINGS
There are a bunch of heavy-hitters reporting this week, but I'll cull it down to the most options liquid underlyings amenable to a decent volatility contraction play ... .
Pictured here is a TWTR (40/52) Aug 16th 39/42 short strangle camped out around the 20 delta strikes. Paying 1.30 (.65 at 50 max) with break evens of 31.70/43.30, it's got a delta/theta metric of .73/5.42.
Also reporting: SBUX (52/25), FB (45/36), FCX (31/45), CAT (29/29), TSLA (20/60), and AMZN (20/29). As you can see, the rank/implied metrics aren't "ideal" (>70 rank/>50% implied) in any of these, so would probably pass if I was truly picky, and lean toward a play in TSLA out of this group if I was less so, since at least its implied is >50% with the downside being that even that high background implied is at the low end of its 52-week range. The TSLA Sept 20th 205/215/300/310 iron condor is paying slightly more than one-third the width of the wings if mid-price filled at 3.42 with break evens at 211.58/303.42 and delta/theta metrics of -1.14/3.14.
BROAD MARKET
TLT (34/11)
SPY (18/13)
IWM (15/16)
QQQ (15/17)
EFA (11/11)
EEM (8/16)
As with last week, broad market still pretty crappy here, with pretty much everything at the low end of its 52-week range and background 30-day implied all sub-20.
SECTOR EXCHANGE-TRADED FUNDS
For yet another week, premium selling opportunities are in gold and the miners ... .
Top 5 By Rank: GDXJ (98/38), SLV (90/35), GLD (80/15), GDX (70/32), and TLT (34/11). And, as with last week, the most "ideal" play is in GDXJ. The September expiry should open up and populate tomorrow, which is the expiry I'd probably sell in with August winding down to 26 days 'til expiry.
IRA TRADES
XLU, XLP: waiting for lower or, at least, the ability to sell not a penny more short puts for something decent that are also not incredibly ridiculously out in time. I may have to reevaluate the price at which I'm willing to take on shares if we stick in here at these levels.
There are a bunch of heavy-hitters reporting this week, but I'll cull it down to the most options liquid underlyings amenable to a decent volatility contraction play ... .
Pictured here is a TWTR (40/52) Aug 16th 39/42 short strangle camped out around the 20 delta strikes. Paying 1.30 (.65 at 50 max) with break evens of 31.70/43.30, it's got a delta/theta metric of .73/5.42.
Also reporting: SBUX (52/25), FB (45/36), FCX (31/45), CAT (29/29), TSLA (20/60), and AMZN (20/29). As you can see, the rank/implied metrics aren't "ideal" (>70 rank/>50% implied) in any of these, so would probably pass if I was truly picky, and lean toward a play in TSLA out of this group if I was less so, since at least its implied is >50% with the downside being that even that high background implied is at the low end of its 52-week range. The TSLA Sept 20th 205/215/300/310 iron condor is paying slightly more than one-third the width of the wings if mid-price filled at 3.42 with break evens at 211.58/303.42 and delta/theta metrics of -1.14/3.14.
BROAD MARKET
TLT (34/11)
SPY (18/13)
IWM (15/16)
QQQ (15/17)
EFA (11/11)
EEM (8/16)
As with last week, broad market still pretty crappy here, with pretty much everything at the low end of its 52-week range and background 30-day implied all sub-20.
SECTOR EXCHANGE-TRADED FUNDS
For yet another week, premium selling opportunities are in gold and the miners ... .
Top 5 By Rank: GDXJ (98/38), SLV (90/35), GLD (80/15), GDX (70/32), and TLT (34/11). And, as with last week, the most "ideal" play is in GDXJ. The September expiry should open up and populate tomorrow, which is the expiry I'd probably sell in with August winding down to 26 days 'til expiry.
IRA TRADES
XLU, XLP: waiting for lower or, at least, the ability to sell not a penny more short puts for something decent that are also not incredibly ridiculously out in time. I may have to reevaluate the price at which I'm willing to take on shares if we stick in here at these levels.