With volatility having bled mightily out of the broader market, earnings plays is where the premium selling game is at, so that is what I'm focusing my attention on this week.
With earnings plays, I'm looking at doing either iron condors or short strangles (buying power permitting) for underlyings with an IVR above 70 and high IV (50+). To a certain extent,...
WYNN just had earnings about two weeks ago. Ordinarily, the volatility quickly contracts, but it hasn't in WYNN. With an IVR of 75 and an IV of 62, I can't pass up this play.
You can naturally go with an iron condor with the same short strike prices, but I'm going with a short strangle here since I have the buying power to do it:
Dec 18th 55/85 short...
Okay, okay, okay, so I stole this idea from Dough ... . I'm not quite using their exact setup (a Dec 18th 31/42 short strangle), as I'm going with a slightly shorter duration.
In this particular case, XOP is a sector ETF, so the traditional rule of thumb is to look to sell premium when the IVR is 35 or greater (as compared to individual underlyings, where the...
Both TWTR and AAPL announce earnings after the close on 10/27.
With TWTR's IVR at 92 and IV at 103, it's a go for a short strangle. AAPL's IV bumped up a little bit today to 51, but it needs to be a bit higher for me to bite on (70+).
Here's my TWTR setup as of right now:
A Nov 6th 25.5/36.5 Short Strangle
POP: 75%
Max Profit: $82/contract
Risk:...
FXE has popped up on my radar again, namely because I use Dough's grid, which ranks underlyings by IVR (IV Rank).
I just got out of the December rung of a short call vertical ladder I set up several weeks ago on this down move, and FXE has naturally gotten my attention again, with IVR popping to 61 (i.e., its IV is in the 61st percentile of the IV for the past 52...
CVX is a correlative equity to XOM. These are consist in trend moves comparable to other equities in their sector. You want volatility for the option's play. Right now, CVX is at a crossroads with an IV of 73 and HV 71. With earnings coming up, we're expecting a shift north till the end of this year's first quarter. That's a good play to go deep in options. ...
