Energy is now historically low in regards to it's percentage allocation in the S&P 500 components.
Likely going to build a long term position if we reach the target, likely early 2020
XOP 3x levered GUSH is trading in the $2's haha... going to need to split soon
No earnings announcements this coming week in underlyings with highly liquid options with ideal rank/implied metrics (>70% rank/>50% 30-day implied).
Like a broken record for the umpteenth week in a row: precious metals,, with GDXJ offering the...
M (87/58) announces earnings this week and has the most appropriate rank/implied volatility metrics for a contraction play.
Pictured here is a narrow short strangle in the September monthly that is almost a short straddle, set up this way primarily because M is trading at 19.43, which Is smack dab in the middle of the short strikes. It's paying 2.25...
... for a 4.89 debit.
Max Profit: $111/contract
Max Loss: $489/contract
Break Even: 20.89
Debit Paid to Spread With Ratio: 81.5%
Notes: Going long XOP at long-term lows with a 90/50 long call diagonal (i.e., 90 delta for the long call/50 for the short). Going a little more aggressive with the short call than I usually would to...
CRM (57/42) releases earnings on Tuesday after market close, so look to put on a play in the waning hours of Tuesday's New York session.
Pictured here is an iron condor in the July monthly with the short options nearest the 20 delta strikes. Preliminarily, it's paying 1.61 at the mid price with break evens wide of the expected move at 133.40/171.60 with...
COST (46/25) announces earnings on Thursday after market close, so look to put on a play in the waning hours of the regular New York session.
Pictured here is an iron condor in the July (53 days) expiry with the short options at their respective 20 delta strikes. Preliminarily, it's paying 1.55 at the mid price, a smidge shy of one-third the width of...
I'm personally not doing a ton here with May opex a mere week away and June at 40 days until expiry, which is a smidge short of that 45 day wheel house I like to use for putting on plays. However, there is "stuff" to do if you're so inclined ... .
M (71/54) announces earnings on Wednesday before market open, so you'll want to shoot for a fill on whatever you do...
Although there are quite a few earnings announcements up next week, none of them appear particularly attractive from both a volatility metric standpoint as well as a liquidity standpoint.
For instance, MYL (78/46), EA (73/50), and ROKU (65/82) all have the right volatility metrics, but when you go to work setups, you're confronted with non-$1 wide strikes, not...