With this week's "meaningful" earnings plays (and by "meaningful," I mean worth more than 1.00 credit) all but over, I'm looking into what could be productive for next week, and they are HD, WMT, CRM, GMCR, and TGT. While you naturally can play some of the earnings for issues that are valued less than $50, you'll find that the vast majority of the time you're...
With attractive earnings season plays quickly waning, I'm looking to play some instruments that still have a bit of earnings afterglow in terms of volatility. BABA (IVR 58/IV 39) is one of those plays: not only does it still have some volatility left over from earnings, it's been subject to profit-taking after a post "Singles Day" sales figures run up/sell...
When I see a possible good idea on someone else's web site, I steal it, and it becomes mine -- all mine (mwuah hah hah). This particular one comes courtesy of TastyTrade. After having just announced earnings, AET still enjoys a fairly high IVR/high IV (78/39). With buying power to spare in this otherwise fairly low volatility environment, I'm going to play via...
Mighty slim pickin's for earnings plays this week from a premium sellers point of view. M (Macy's) is one of them with high IVR/high IV (100/92). Because I've got quite a bit of buying power available, I'm going short strangle: Nov 20 39/53.5 POP%: 74% Max Profit: $101/contract Buying Power Effect: ~$463/contract Break Evens: 37.99/54.51 As with all short...
Okay, okay, okay ... . So FB doesn't meet my ordinary criteria of having high IVR (70+) and high IV (50+) for purposes of selling premium (currently its IVR/IV is 46/36). My excuse is, "Hey, it's Facebook; you can't not play Facebook" (plus the typical 1 SD short strangle yields $145 per contract and the options, unlike some of my plays, are extremely liquid,...
With an IVR of 91 and an IV of 71, WFM's premium is sufficiently "wholesome" (see what I did there?) for a premium selling earnings play. The max profit isn't huge, but the little ones do add up ... . Due the price of the underlying, I will be going short strangle: Nov 20th 26.5/36 Short Strangle POP%: 75% Max Profit: $72/contract BPE: Undefined Risk BE's:...
Needless to say, X has been absolutely hammered this year, and the pain just doesn't seem to stop, if today's earnings are any indication (down 1.49 in AH trading or 11.51%). With its high IVR/IV (94/102), it's a great premium selling play, but not via short strangle or iron condor due to the price of the underlying; you just won't get squat for premium if you go...
KORS (IVR 96/IV 53) announces earnings tomorrow before market open, so if you're going to put on a play, do it before today's market close. Options liquidity isn't great, so you may want to do some price discovery on your setup, looking for a fill above the mid price ... . I'm going short strangle due to the price of the stock: Nov 13th 34/45 Short...
Because I have the buying power available, I'm going to attack TSLA via short strangle. I'm going to skew it slightly bearish and go a bit wide, with the short call above the 1 SD line, but with the short put between the 1 and 2 SD: Nov 13th 175/242.50 for a 2.21 credit POP%: 81% Max Profit: $221/contract BPE: ~$2135 BE's: 172.79/244.71 If you go the iron...
TSLA announces earnings tomorrow (Tuesday) after market close, so if you're going to play it, put on your set up before the end of the NY session. Here's a couple of possibilities: Nov 13th 187.5/240 Short Strangle for 3.97 in credit Max Profit: $397 BPE: ~ $2135 POP%: 74% BE's: 183.53/243.97 Nov 13th 180/187.5/240/247.5 Iron Condor for 1.69 credit Max Profit:...
As you can see by the chart below, VIX sub-12 doesn't happen very often, and while I know that folks like to play the VIX in the +12 to infinity no man's land (myself, on occasion, included, see post below), I think the better bet is to wait for sub-12 VIX and then play this index via debit spread (e.g., 10/11.5, 10/12, 10.5/12 call spread) where you know your...
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...
Well, it's probably not worth videotaping, but with earnings to be announced after hours tomorrow and IVR/IV both at 90+, it's worth selling premium in ... . If you feel the need to videotape that, well, then, go right ahead ... . Due to the price of the underlying, I am going short strangle with this one: Nov 6th 23/34 Short Strangle POP%-age: 74% Max Profit:...
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:...
As of right now, AAPL is looking unpromising from a premium selling perspective around earnings, which are scheduled to be announced on 10/27 after market close. With IVR and IV both at 34, the underlying is currently less than ideal for premium selling. Naturally, this may quickly change come Monday NY open and going into Tuesday immediately before earnings,...
BABA (IVR 82/IV 83), like COH, announces earnings on 10/27 premarket, so look to put on a play on 10/26 during the New York session. I have looked at both an iron condor setup, as well as a short strangle setup for the Oct 30th expiry. An iron condor is somewhat inflexible on the call side for the Oct 30th expiry, since the calls are five wide 85 and above...