5) Look at Setups in Expiries in the Friday Immediately Following the Announcement or the Friday Thereafter. I mechanically set these up in options that expire the week following the announcement, as it gives me a little more time for the setup to work out. 6) Avoid ADR's and/or Underlyings That Aren't Scheduled to Announce on a Particular Date/Time. Next week,...
Traditionally, AA's earnings announcement marks the beginning of the earnings season for me, and it announces earnings on Monday after market close. Naturally, there are tons of plays you can make, but, unfortunately, not all are ideal for premium selling or, for that matter, other options strategies that rely on a firm directional assumption (like Super...
There are several different ways to set up iron condors, one of which is to set it up using given strikes' percentage of being out of the money at expiration; another way is to set up the IC using the delta values for each individual option. In this particular case, I'm using the "probabilistic" method. In this particular case, each long option is about at the...
With VIX at sub-14 levels and without much on the earnings calendar that is ideally playable with options from a premium selling standpoint, next week is likely to be a schnooze in the absence of a broad market volatility pop. Nevertheless, there are a couple of plays I might consider. MON: MON announces earnings on April 6th before market open. With an implied...
Closing out at 50% max profit. Although price moved concerningly close to the short put, the collapse in volatility in the underlying gave the needed assist ... .
With the VIX at sub-15 levels, premium selling plays are hard to come by, so I can either resort to low volatility strategies (calendars, diagonals), look to go "long volatility," or search for "diamonds in the ruff" for premium selling. Since I not a rabid low vol strategy player, I'm going to look at seeking out what limited short volatility plays there are or...
Selling a little TSLA premium here ... . Even though the implied volatility rank is not over 70, the implied volatility is 57%, which why I'm going to attempt to squeeze some juice out of this one. The metrics: Probability of Profit: 70% Max Profit: $112/contract Buying Power Effect: $388/contract
With the VIX finishing the week out at 16.66, next week is setting itself up to be a less than sexy week for premium selling, particularly in broader market instruments like SPY, IWM, QQQ, and DIA. Moving to other sectors, the Brazil ETF, EWZ continues to be hot premium selling wise, with an implied volatility rank of 72. A couple of issues in the oil and gas...
... for premium selling For the first time in quite a bit, I opened my Dough "TastyTrade" grid only to find that there is not a single underlying with an implied volatility rank of greater than 70 (there is one in the "Notable Stocks" grid -- ANF (see Post below)). There are some that are close (GDX, GDXJ, GG, EWZ -- all in the mid to high 60's). Naturally, the...
I ground through a large number of next week's earnings announcements, thinking I might find a nugget or two to play via options, but was somewhat disappointed. I've never played ESRX before, which announces on Tuesday after market close, probably because I'm not a fan of anything remotely pharmaceutical for these plays beyond the "uber" names like LLY and AMGN. ...
With an implied volatility rank of 83 and an implied volatility of 46, XLE represents a good, non earnings premium selling play here. March 18th XLE 43/47/60/64 Iron Condor Probability of Profit: 66% Max Profit: $94/contract Buying Power Effect: $306/contract
XLE Feb 26th 47.5/59 short strangle POP%: 73 Max Profit: $144/contract BPE: ~$531 BE's: 46.06/60.44
GS announces earnings on Wednesday before open, so look to put on this play before Tuesday market close. Here are the plays: Jan 29 142/170 short strangle Probability of Profit %: 76% Max Profit: $180/contract Buying Power Effect: ~$1749 Break Evens: 140.20/171.80 Jan 29 138/143/167.5/172.5 iron condor Probability of Profit %: 69% Max Profit:...
CREE announces earnings on 1/19 after market close, so look to put on any premium selling play before the session ends to take advantage of a post-earnings announcement volatility contraction. Ordinarily, when a play won't yield at least a 1.00 credit for a 1 standard deviation short strangle or iron condor setup, I just pass it over. It is, after all, earnings...
IBM announces earnings tomorrow after market, so look to put on a play before market close. Here are two possible plays, but I'm looking at these in off hours, so I'm doubtful that the potential credit to be received is accurate, although the strikes, probability of profit, and break even metrics should be fairly accurate (as usual, they may require a strike of...
With an implied volatility rank of 64 -- the highest among the broad market ETF's SPY, IWM, QQQ, and DIA, IWM offers a premium selling opportunity here that is likely to quickly evaporate as the beginning of the year positioning ensues. I'm not going to play this, as I'm already in an IWM poor man's covered call, but here's the setup: Feb 12 103.5/117.5 short...
Okay, so there isn't a 1.00 worth of credit in this setup, but I'm going to put it on anyways due to its high IVR/high IV (79/52). EWZ Jan 29 18.5/26 short strangle POP%: 70% Max Profit: $82/contract BPE: ~$235 BE's: 17.68/26.82
You know what they say, one's man's junk is another man's treasure ... . With an IVR of 100 and an IV of 18, this may be as good as junk is going to get for premium selling (don't quote me on that; further sell-off could be on the horizon ... ). HYG Jan 29 74/84 short strangle POP%: 75% Max Profit: $109/contract BPE: ~ (Undefined/After Hours) BE's: 72.91/85.09