... for a .60/contract credit. Notes: 30-day at 44.7% and expiry-specific at 44.8%. Going with the 58 day weekly 16 delta strike, since I have a March 19th 30 and didn't want to go out to April just yet. 2.04% ROC at max.
HIGHLY LIQUID OPTIONS SINGLE NAME EARNINGS (LISTED CHRONOLOGICALLY IN ORDER OF ANNOUNCEMENT AND SCREENED FOR >50% 30-DAY IMPLIED): HAL (13/61/13.9%),* Tuesday, before market open NFLX (25/50/11.3%), Tuesday, after market close AA (18/69/15.9%), Wednesday, after market close UAL (13/64/14.8%), Wednesday, after market close From a bang for your buck perspective:...
EARNINGS: There aren't a ton of earnings next week. Some financials are announcing, but I generally don't play those a ton for volatility contraction, since they never really frisk up that much, and all are below 50% 30-day implied here. KBH provides the best bang for your buck with the implied metrics I'm generally looking for (>50%), followed by DAL. Both,...
EARNINGS: It's a light week for earnings announcements, which means it's an even lighter week for options liquid underlyings, none of which meet my cut-off for 30-day implied >50%. EXCHANGE-TRADED FUNDS RANKED BY PERCENTAGE THE JANUARY AT THE MONEY SHORT STRADDLE IS PAYING AS A FUNCTION OF STOCK PRICE: XOP (18/59/15.8%) GDXJ (16/42/13.2%) XLE (26/46/11.6%) KRE...
EARNINGS: Only one underlying makes my cut for a earnings announcement volatility contraction play: GPS (25/70/14.9%),* which announces on Tuesday after market close, so look to put on a play in the waning hours of Tuesday's session. To me, it's small enough to short straddle, with the pictured setup paying 3.72 (.93 at 25% max). Alternatively, go short...
EARNINGS ANNOUNCEMENT VOLATILITY CONTRACTION PLAYS: ... Screened for options liquidity and 30-day implied greater than 50% and ranked by "bang for your buck": ROKU (38/31/16.4%),* announcing Thursday after market close. WYNN (27/76/14.7%), announcing Wednesday (no time specified). SQ (43/74/14.3%), announcing Thursday after market close. PYPL (56/60/11.6%),...
Adam and Eve double bottoms confirmed, we're trading for the gap fill @ 26.5
EARNINGS ANNOUNCEMENT VOLATILITY CONTRACTION PLAYS: MU (27/57/10.8%)*, announces Tuesday after market close. BBBY (32/105/20.2%), announcement Thursday before market open. Pictured here is an MU October 16th 44/55 short strangle, paying 1.52 as of Friday's close (.76 at 50% max). For those of a defined risk bent: the MU October 16th 40/45/52.5/57.5 iron condor...
A late "Week Ahead" post after a short road trip ... . EARNINGS: There aren't many options liquid underlying volatility contraction plays on tap this week. COST (35/38/6.8% (October)-10.1% (November) announces on Thursday after market close, but the volatility metrics aren't the greatest for a contraction play with 30-day at 38, the October monthly at...
... ladder for a total of a 2.34 credit. Notes: The highest 30-day on the exchange-traded fund board. Will run to approaching worthless/if assigned -- cover. Current yield of 3.38%.
EARNINGS ANNOUNCEMENT VOLATILITY CONTRACTION PLAYS: Currently, no options highly liquid underlyings announcing earnings next week with high rank/implied. EXCHANGE-TRADED FUNDS SCREENED FOR 30-DAY IMPLIED > 35%: GDXJ (16/54/12.0%)* XOP (16/51/12.1%) SLV (34/47/10.7%) EWZ (17/45/10.7%) GDX (18/43/10.2%) BROAD MARKET: QQQ (32/35/8.2%) IWM (27/32/7.3%) SPY...
EWZ just broke out of a downward channel at ~$30 on Friday. $EWZ is an ETF of the Brazilian market with stocks like VALE SID NTCO GOL AZUL ITUB BBD in the index. EWZ has previously moved with the domestic "value" trade. EWZ broke out of a downward channel after forming a double bottom. First Target $32, Second Target $33, then looking for relative highs above...
... with a cost basis of 31.93. Notes: Another broken trade in which I took on shares. (See Post Below). Some work needs to be done on improving the 27 short call ... .
... 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.
EARNINGS: 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...
EARNINGS: 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%: EWW (59/44/12.6%) EWZ (47/63/17.7%) XLE...
May's monthly candle closed above April's high. If price returns to April's high, then I will begin purchasing call options at the 26.50 strike with a July 2 expiration.