THE WEEK AHEAD: DAL, C, JPM, WFC EARNINGS; EWZ, TLT/TBT
Other Earnings: DAL (rank 41/30-day 32) announces on Thursday before market open. The metrics don't look promising here for a directionally neutral premium selling play, but I could see going for something if experience engine failure and crash into the 52-week low around 48 and implied remains high such that a assumption play would be productive (e.g., short puts, Jade Lizard, etc.).
Although there are some other single names that are "ripe" for a contraction play right here ( TSLA ( in 31) comes to mind), my general tendency is to resist the urge to put plays on in single name with announcements that are near the monthly and instead wait until the eve of the announcement. With a rank of 99 and implied of >100%, though, it's understandably tough to sit on one's hands and wait.
On the Exchange-Trade Fund Front:
Brazil is voting today, so it's likely that you're too late to get into a contraction play that may evolve after the results are finalized (the time to have put that play on was last week). That being said, it's also possible that EWZ gets even more volatile depending on the outcome, even though implied is at the top of its 52-week range at 56.2%.
The financial media has returned to covering 10-year T note yield hand-wringing and/or the spiking of bond yields in general as a general, explanatory theme of why the broad market gave some up last week. TLT broke through long-term support at 116 last week, cratering to 113. I was previously shorting TLT from the 122 level via put diagonals, but it appears that play may have temporarily played out in the absence of some risk-off event that drives treasuries back up. I will continue to short TLT on retrace, but there is little that sticks out to me in terms of horizontal resistance other than 122 and 116, and I'm hesitant to short from 116, since it literally just broke that level "seconds ago" in the scheme of things.