A bunch of earnings next week, particularly in the financials sector:
C (40/58/14.1%): Tuesday before market open.
DAL (50/95/23.0%): Tuesday before market open.
JPM (38/49/12.1%): Tuesday before market open.
WFC (58/63/15.4%): Tuesday before market open.
GS (31/48/11.7%): Wednesday before market open.
EBAY (71/56/13.4%): Wednesday before market...
Hoje estamos há praticamente 1 mês sobre a pressão da volatilidade gerada pelo coronavírus.
Em análise comparativa, temos que o EWZ tem se mostrado mais volátil que o SPX , que já está nas suas máximas.
Estamos sentido essa volatilidade no dia-a-dia no IBOV , que tem apresentado movimentos absurdamente desproporcionais.
A bolsa brasileira...
... for a total of 1.73 credit, with the 24 paying .80 and the 23, .93.
Notes: One of the dividend yielders on my shopping list (yield currently at 3.58%). I've been going three rung with these, but there is currently no October to take advantage of.
MU (36/64/11.7%) announces earnings on Monday after the close. Pictured here is a 19 delta short strangle in the July expiry, paying 1.55.
FDX (46/59/11.4%) announces Tuesday after the close, with the 20 delta July 17th 115/147 paying 4.56.
EXCHANGE-TRADED FUNDS ORDERED BY RANK AND SCREENED FOR 30-DAY >35%:
$EWZ $EWZS $BRZU $BZQ I'm expecting more pain ahead for EWZ, Brazil market etf. No rule that says it's going to drop from here but I will be much more interested in going long if it drops to that lower trend. I'll be patient on this. Blue line is USOIL.
... with June monthly at-the-money short straddle price as a function of stock price shown:
HPQ (38/62), 14.3%: Announces Wednesday before market open.
CRM (54/46), 8.7%: Announces Thursday before market open.
COST (35/32), 6.5%: Announces Thursday before market open.
Notes: Ordinarily, I screen potential earnings announcement volatility contraction...
Ever seen a "Brazilian Zebra"?
Pictured here is an ITUB (35/76) Zero Extrinsic Back Ratio Spread (hence the colorful acronym, "ZEBRA") in the Brazilian financial, ITUB. Since Zebras are high delta directional plays, they're seen as synthetic stock substitutes and can be deployed both on the call side (long), as well as on the put side (short), with the general...
... for a 1.44 credit.
It's not much of a ladder with only two rungs, but there's no July currently (there will be one after May opex, after which I'll consider adding a third rung).
An acquisitional play in high rank/implied (53/66) to potentially grab this divvy yielder (5.15%) at a discount.
... for an 8.40/contract debit.
Max Loss: $840/contract
Max Profit: $260/contract
Debit Paid/Spread Width Ratio: 76.4%
Break Even: 23.40 vs. 23.30 spot
Notes: A neutral to bullish assumption, IRA-friendly play in the weakened EWZ. I naturally could have gone short put (the June 19th 19 shortie is paying .63), but wanted the opportunity to make...
There are a ton of earnings coming out next week, with the most options liquid plays to be had in AMD (44/71), TWTR (77/80), and FB (59/50).
Pictured here is a delta neutral short strangle in AMD in the June cycle (54 days). Camped out around the 20 delta strikes, it paid 3.12 as of Friday close (5.6% as a function of share price) with break evens at...
After falling about 60% from this year's High, the EWZ has started a correction movement in "W" shape.
If the price goes above $26,50, I believe the share will return to trade between $30 and $35 and it'll close the first GAP opened by the coronavirus crisis.
I started my LONG position in this share since $20,00. But, if you want to get in this...
Emerging markets are at 2008 levels, as IMF says this is going to be WORSE than 2008. The rest of the world still needs to catch up, SPX is at Dec 2018 level and this virus is way worse than a double rate increase.
Ask yourself, are you better or worse off than Dec 2018?
PBR caiu demais! Excelente oportunidade de compra!
A NYSE:PBR caiu demais na crise do Coronavirus e da guerra comercial do Petroleo. O papel caiu mais que as demais empresas do setor, mais que o proprio petroleo e mais que o AMEX:EWZ , indice que ela compoe e tem grande representacao.
Estou efetuando compras no papel desde $11.00. E como meu unico receio esta...
ADBE (89/65) and ORCL (77/60) both announce earnings on Thursday after market close and have the metrics I look for in earnings-related volatility contraction plays (>70% rank; >50% 30-day implied).
Pictured here: a short strangle paying 11.65 at the mid price camped out around the 16 delta. Its defined risk counterpart: the 265/275/395/405 ten-wide...
... for a 1.26 credit.
Max Profit: $126
Max Loss/Buying Power Effect: Undefined/$440
Credit Received/Buying Power Effect Ratio: 28.6%
Notes: Selling a directionally neutral short strangle in the first expiry in which the at-the-money short straddle pays greater than 10% of the stock price with the intention to delta under hedge...