UNDERLYINGS WITH EARNINGS IN THE REAR VIEW, SORTED BY PERCENTAGE THE MARCH AT-THE-MONEY SHORT STRADDLE IS PAYING AS A FUNCTION OF STOCK PRICE:
CRON (47/107/28.6%)*
AAL (27/111/27.3%)
TSLA (21/80/21.2%)
UAL (14/80/20.1%)
CNX (16/80/21.3%)
HAL (16/72/19.3%)
FCX (16/64/17.8%)
GE (22/59/15.9%)
AMD (19/59/15.9%)
BA (16/55/15.3%)
AAPL (34/49/12.9%)
As you can see, there's a concentration of richly premiumed underlyings that are airlines or airline-related (AAL, UAL, BA). If you don't want to dabble with single name, consider going with JETS (10/51/14.8%), the airlines exchange-traded fund.
EXCHANGE-TRADED FUNDS, SORTED BY PERCENTAGE THE MARCH AT-THE-MONEY SHORT STRADDLE IS PAYING AS A FUNCTION OF STOCK PRICE:
XRT (83/106/27.7%)
MJ (63/79/22.7%)
SLV (61/73/19.1%)
ICLN (10/58/16.5%)
JETS (10/51/14.8%)
EWZ (22/51/13.6%)
For some reason, I didn't have XRT in my highly liquid exchange traded fund list, and its implied is ridiculously high relative to the broad market and to itself -- in the 83rd percentile of where it's been over the past 52 weeks. So juicy, so good to go, right? The March 19th 65 short put was paying 2.48 as of Friday close -- a potential 3.97% ROC at max. Still bueno so far.
But you pop open the hood on the fund, and it's clear where all the juice is coming from: GME is now 19.98% of its holdings** with the second largest being BLNK at 1.58%, so some caution is in order before sticking a bullish assumption or nondirectional (e.g., short strangle, iron condor) toe in. (It also begs the question of why a retail exchange-traded fund has a position in a company that we've all been told is dying, on life support, or dead).
BROAD MARKET:
IWM (36/39/10.0%)
QQQ (33/37/9.4%)
SPY (26/31/7.9%)
"I'm ba aaaack," says volatility. I don't currently have an Q's on, so that's probably where I'll dip my stick, assuming it sticks in there long enough for me to get something on.
* -- The first number where 30 day implied is relative to where it's been over the past 52 weeks; the second, 30-day implied; and the third, what the March 19th at-the-money short straddle is paying as a function of stock price.
** -- GME closed Friday at $325.00/share with implied volatility in the 77th percentile and 30-day at a whopping 570%.
CRON (47/107/28.6%)*
AAL (27/111/27.3%)
TSLA (21/80/21.2%)
UAL (14/80/20.1%)
CNX (16/80/21.3%)
HAL (16/72/19.3%)
FCX (16/64/17.8%)
GE (22/59/15.9%)
AMD (19/59/15.9%)
BA (16/55/15.3%)
AAPL (34/49/12.9%)
As you can see, there's a concentration of richly premiumed underlyings that are airlines or airline-related (AAL, UAL, BA). If you don't want to dabble with single name, consider going with JETS (10/51/14.8%), the airlines exchange-traded fund.
EXCHANGE-TRADED FUNDS, SORTED BY PERCENTAGE THE MARCH AT-THE-MONEY SHORT STRADDLE IS PAYING AS A FUNCTION OF STOCK PRICE:
XRT (83/106/27.7%)
MJ (63/79/22.7%)
SLV (61/73/19.1%)
ICLN (10/58/16.5%)
JETS (10/51/14.8%)
EWZ (22/51/13.6%)
For some reason, I didn't have XRT in my highly liquid exchange traded fund list, and its implied is ridiculously high relative to the broad market and to itself -- in the 83rd percentile of where it's been over the past 52 weeks. So juicy, so good to go, right? The March 19th 65 short put was paying 2.48 as of Friday close -- a potential 3.97% ROC at max. Still bueno so far.
But you pop open the hood on the fund, and it's clear where all the juice is coming from: GME is now 19.98% of its holdings** with the second largest being BLNK at 1.58%, so some caution is in order before sticking a bullish assumption or nondirectional (e.g., short strangle, iron condor) toe in. (It also begs the question of why a retail exchange-traded fund has a position in a company that we've all been told is dying, on life support, or dead).
BROAD MARKET:
IWM (36/39/10.0%)
QQQ (33/37/9.4%)
SPY (26/31/7.9%)
"I'm ba aaaack," says volatility. I don't currently have an Q's on, so that's probably where I'll dip my stick, assuming it sticks in there long enough for me to get something on.
* -- The first number where 30 day implied is relative to where it's been over the past 52 weeks; the second, 30-day implied; and the third, what the March 19th at-the-money short straddle is paying as a function of stock price.
** -- GME closed Friday at $325.00/share with implied volatility in the 77th percentile and 30-day at a whopping 570%.
Comment:
Well, darn it. That XRT 65 short put finished today's session at .89 at the mid, no doubt primarily due to vol crush, since 30-day's now at 62.9% versus the 106% I saw when I looked at it over the weekend. Oh, well, sometimes you just miss opportunities for whatever reason.