Post-earnings, there is still enough juice in a premium selling play in GPRO to make it a worthwhile play to bridge the gap between earnings seasons (IVR/IV 58/75). Now that the underlying is price at about $20, the only way to go is via short strangle: Jan 15 15/26 short strangle for a 1.06 credit fill POP%: 74% Max Profit: $106 Buying Power Effect:...
As with the FL play, IVR/IV in WSM remains high post-earnings. Similarly, this is one of those issues that doesn't offer weeklies, so I'll have to go farther out in time than usual to find good strikes. Here's the play: WSM Jan 15 55/72.5 short strangle for a 1.05 credit POP%: 76% Max Profit: $105 BPE: ~$656 BE's: 53.95/73.55 With both this and the FL play, I...
Having just announced earnings, volatility in FL remains high (IVR/IV 93/36), so I'm looking to put on a premium selling play. Unfortunately, FL doesn't have weeklies, so I'm going to have to go farther out than usual to take advantage of decent strike prices that are sufficiently far out enough to allow the trade to breathe. Here's the setup I'm look for a fill...
Both GMCR and CRM announce their respective earnings on Wednesday AMC (after market close) and both look to be 1.00 plus credit ($100/contract) earnings plays, so keep an eye on them through Wednesday's NY session and look to put on plays before Wednesday close if that's what you're going to do ... . I have repeatedly gone at WMT and LOW to see whether I can...
TGT (IVR/IV 100/48) announces earnings on Wednesday before market open (BMO), so look to put on any play on Tuesday before NY close. Nov 27 65/77.5 short strangle POP%: 75% Max Profit: $124/contract BPE: ~$948 (off hours; this may change on market open). BE's: 63.76/78.74 Look to cover at 50% max profit and redeploy your buying power again elsewhere ... .
With earnings set to be announced in HD, WMT on 11/17 (Tuesday) before market open , look to put on plays in these before Monday's NY close. Naturally, a lot could happen on Monday with price (particularly with HD, which was off about 3% in today's trading), but I would look to the Nov 27th expiry for a short strangle in HD (currently a 113/127 will net you a...
I'm not going to play this particular one, as I've already got more than my fair share of oil and gas plays on at the moment (OIH, XOP, HES), but IVR/IV hasn't been this high in XOM in quite some time (79/26). Here's what I would do were I not so heavily into the sector right now: Dec 31st 72/84.5 short strangle for 2.01 credit POP%: 74% Max Profit: $201 per...
Another post-earnings play: CAT, with an IVR of 72 and an IV of 28. Naturally, a lot could change between now on Monday's open, but it doesn't hurt to think ahead. Here's the play: Dec 31st 63/76 short strangle for 1.65 credit POP%: 76% Max Profit: $165 per contract BPE: ~$820/contract BE's: 61.35/77.65
With a dwindling earnings calendar and some buying power to put to good use, I'm looking to go where the IVR/IV takes me. With an IVR of 74 and fairly decent IV of 43, HES popped up toward the top of the Dough "Notable Stocks" grid (sorted by IVR). Here's my set up: Dec 24 51/68 Short Strangle POP%: 75% Max Profit: $150/contract BPE: ~$597/contract BE's:...
In spite of the fact that I think "the fat lady has sung" for this particular week of earnings (see post below), I did briefly consider playing JWN (Nordstrom) because it came up on the Dough "High Options Volume" grid and shows an IVR/IV of 100/75. It announces earnings on 11/12 after market close. I looked at Nov 20th expiry setups and don't like what I see,...
With this week's "meaningful" earnings plays (and by "meaningful," I mean worth more than 1.00 credit) all but over, I'm looking into what could be productive for next week, and they are HD, WMT, CRM, GMCR, and TGT. While you naturally can play some of the earnings for issues that are valued less than $50, you'll find that the vast majority of the time you're...
With attractive earnings season plays quickly waning, I'm looking to play some instruments that still have a bit of earnings afterglow in terms of volatility. BABA (IVR 58/IV 39) is one of those plays: not only does it still have some volatility left over from earnings, it's been subject to profit-taking after a post "Singles Day" sales figures run up/sell...
When I see a possible good idea on someone else's web site, I steal it, and it becomes mine -- all mine (mwuah hah hah). This particular one comes courtesy of TastyTrade. After having just announced earnings, AET still enjoys a fairly high IVR/high IV (78/39). With buying power to spare in this otherwise fairly low volatility environment, I'm going to play via...
Mighty slim pickin's for earnings plays this week from a premium sellers point of view. M (Macy's) is one of them with high IVR/high IV (100/92). Because I've got quite a bit of buying power available, I'm going short strangle: Nov 20 39/53.5 POP%: 74% Max Profit: $101/contract Buying Power Effect: ~$463/contract Break Evens: 37.99/54.51 As with all short...
Okay, okay, okay ... . So FB doesn't meet my ordinary criteria of having high IVR (70+) and high IV (50+) for purposes of selling premium (currently its IVR/IV is 46/36). My excuse is, "Hey, it's Facebook; you can't not play Facebook" (plus the typical 1 SD short strangle yields $145 per contract and the options, unlike some of my plays, are extremely liquid,...
With an IVR of 91 and an IV of 71, WFM's premium is sufficiently "wholesome" (see what I did there?) for a premium selling earnings play. The max profit isn't huge, but the little ones do add up ... . Due the price of the underlying, I will be going short strangle: Nov 20th 26.5/36 Short Strangle POP%: 75% Max Profit: $72/contract BPE: Undefined Risk BE's:...
Needless to say, X has been absolutely hammered this year, and the pain just doesn't seem to stop, if today's earnings are any indication (down 1.49 in AH trading or 11.51%). With its high IVR/IV (94/102), it's a great premium selling play, but not via short strangle or iron condor due to the price of the underlying; you just won't get squat for premium if you go...
KORS (IVR 96/IV 53) announces earnings tomorrow before market open, so if you're going to put on a play, do it before today's market close. Options liquidity isn't great, so you may want to do some price discovery on your setup, looking for a fill above the mid price ... . I'm going short strangle due to the price of the stock: Nov 13th 34/45 Short...