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