Post-earnings, TEVA's implied volatility rank/implied volatility are still quite high, and the 47.5/60 short strangle goes for 1.58 ($158)/contract at the mid. Look to take it off at 50% max profit ... . Defined Risk Alternative: Sept 16th 42.5/47.5/60/65 iron condor, currently going for 1.13 ($113)/contract at the mid.
... for a 2.85 ($285)/contract credit. This will complete an Aug 26th 10/35 short strangle worth 4.15 in credit ($415)/contract, which I'll shoot to take off at 50% max profit. Because I already had the 10 short put on, this doesn't cost me any additional buying power. This will also give me some protection to the short side, since I think that this is more...
Mmm. Must have gotten busy and not posted this one. In any event, I legged into these two sides separately, the 8 first and then the 40 after it ripped somewhat higher. The whole burrito was worth 5.82 in credito. Closing out here for a 4.60 debit nets me $122/contract in profit. This thing is "wicked illiquid", so I figured I get while the gettin' was good ... .
This one popped up earlier today as a high implied volatility play ... . Filled for a 1.83 ($183)/contract credit ... . I'll look to take it off at 50% max ... .
Currently, there are three earnings announcements next week that meet my >70% implied volatility rank, >50% implied volatility standards: YELP, KORS, and NVDA and that offer up at least 1.00 ($100)/contract in credit for my troubles. Preliminarily: YELP Aug 19th 26.5/38 short strangle goes for 1.09 ($109)/contract at the mid (Tuesday after market close). KORS...
Ain't much decent premium out there ... . HOG announces in 2 days, but I'm really just doing this as a longer-term premium selling play (hence, the Sept expiry), since there isn't jack diddly in the market of late. Metrics: Probability of Profit: 72% Max Profit: 1.38/contract ($138) Max Loss/Buying Power Effect: Undefined/$501 Break Evens: 41.12/58.88 Notes:...
GILD announces earnings on Monday after market close, so look to put this on sometime before the final bell. Metrics: Probability of Profit: 74% Max Profit: $123/contract Max Loss/Buying Power Effect: Undefined Break Evens: 77.77/95.23 Notes: This is being done in the off hours, so I'm not getting accurate buying power effect metrics for this setup, and it's...
Unfortunately, the only underlying announcing earnings next week that has sufficient implied volatility to consider selling premium in is NFLX, with an implied volatility of 52%. It announces earnings on Monday after market close, so look to put on a play some time on Monday, preferably right before the NY close. Preliminarily (I'm checking this crap in off...
1. P, 79% 2. FCX, 76% 3. X, 75% 4. TWTR, 67% 5. STX, 57% 6. ABX, 56% 7. NFLX, 56% 8 GG, 53% 9. SLW, 52% Naturally, we are coming into earnings season here, so there's a reason that some of these have high IV here (e.g., NFLX announces in a week and a half). Ordinarily, I like IV to be >50% and IVR (current IV's level relative to where it's been for the past 52...
WBA announces earnings tomorrow before market open, so look to put on a play before today's NY close. Here are the metrics for defined/undefined risk setups: WBA July 15th 76.5/90 short strangle POP%: 76% Max Profit: $106/contract Max Loss/Buying Power Effect: Undefined/$1031/contract WBA July 15th 74/78/89/93 iron condor POP%: 67% Max Profit: $104/contract Max...
With broader market volatility bleeding out of the markets, I'm on the hunt for non-index premium-selling plays, and there are a few that have popped up on my radar. That being said, earnings season is nigh, so it might be best to be particularly selective as to individual underlying plays, keeping powder dry for the actual earnings, rather than pulling the...
Truth be told, I'm not a huge of fan of leveraged instruments, but when a $23 underlying has the potential to yield a $100 or more worth of credit, I'll briefly overlook the warts these instruments have as an "investment" tool ... . Here are the metrics for the play: Probability of Profit: 77% P50: 81% Max Profit: $127/contract at the mid (this is off hours...
Continuing to follow the volatility ... . And it's currently in gold ... . Metrics: Probability of Profit: 72% P50: 78% Max Profit: $95/contract Max Loss/Buying Power Effect: Undefined/~$250/contract Theta: 3.11/contract Delta: -9.7/contract Notes: I'll shoot for taking this off at 50% max profit ... .
BBY announces earnings on 5/24 (Tuesday) before market open, so look to put on a play shortly before Monday's NY close to take advantage of the implied volatility crush that commonly occurs post-earnings announcement. Here's the preliminary setup, since price may move during the NY session, requiring slight adjustment of the strikes: BBY June 3rd 29.5/35 short...
This is part of a small WFT covered call I'm working ... . The strategy here is to continue to reduce cost basis in the underlying shares. Here I'm doing it with a July 15th 4/6 short strangle in an attempt to sell premium while the implied volatility is still high ... . Metrics: Probability of Profit: 63% Max Profit: $61/contract Max Loss/Buying Power Effect:...
Following the premium. With a nearly 70% implied volatility rank and an implied volatility slightly north of 50%, I'm going nondirectional here (what's new) with this short strangle. Metrics: Probability of Profit: 65% P50: 78% Max Profit: $107/contract Max Loss/Buying Power Effect: Undefined/~$250/contract Theta: 2.55/contract Delta: -7.55/contract Notes:...
Going where the premium is at ... . I already have a setup in GDX in the same expiry, so I'm layering another on small here ... . Metrics: Probability of Profit: 69% P50: 81% Max Profit: $93/contract Max Loss/Buying Power Effect: Undefined/~$236/contract Delta: =8.29/contract Theta: 2.98/contract
There is simply not much high quality premium to sell out there; this is one of them (>70 implied volatility rank; >50 implied volatility). Metrics: Probability of Profit: 69% P50: 79% Max Profit: $109/contract Max Loss/Buying Power Effect: Undefined/~$255/contract Breakevens: 20.41/30.09 Theta: 3.13/contract Delta: -8.87/contract Notes: I'm looking to take...