THE WEEK AHEAD: AMD, TWTR, FB EARNINGS; SLV, GDX, GDXJ; EWW
EARNINGS:
There are a ton of earnings coming out next week, with the most options liquid plays to be had in AMD (44/71), TWTR (77/80), and FB (59/50).
Pictured here is a delta neutral short strangle in AMD in the June cycle (54 days). Camped out around the 20 delta strikes, it paid 3.12 as of Friday close (5.6% as a function of share price) with break evens at 42.88/73.12. Go defined risk with a five-wide iron condor in the same cycle -- the 42/47/70/75, and you'll get paid 1.48, 29.6% return on capital at max, 14.8% at 50%.
A TWTR June 19th 24/36 short strangle paid 1.83 (6.4% as a function of share price) as of the Friday close; the FB June 19th 165/220, 7.07 (3.7% as a function of share price). Consequently, if you're looking for "buck bang" as a function of share price, your best best is going with the TWTR play, with its higher 30-day.
EXCHANGE-TRADED FUNDS WITH 30-DAY >35% ORDERED BY RANK:
SLV (83/51)
GDXJ (72/79)
GDX (64/63)
EWW (61/60)
XLU (60/40)
EWZ (57/72)
XLE (55/66)
SMH (46/46)
XOP (42/81)
USO (33/192)
USO is going to be undergoing a 1:8 reverse split after the close of markets on April 28th, so you may want to steer clear of entering an options play before then and/or close out any options plays you've got on here to avoid being stuck with nonstandards post-split. As if it wasn't apparent, the juice is in precious metals/miners (SLV, GDX/GDXJ) and oil-related exchange-traded funds (XOP, XLE, USO), with some secondary squeezings to be had out of Mexico (EWW), Brazil (EWZ), and semicons (SMH).
With respect to EWW and EWZ, I considered each for a potential IRA trade, since both pay dividends, although they're only twice a year and somewhat "uneven." (EWW yield shows as 4.93%; EWZ as 5.44%). The EWW June 19th 22 was paying .78 as of Friday close (3.7% return on capital at max), the EWZ June 19th 18, .96 (5.6% return on capital at max), so may consider doing one or the other as a potential aquisitional play.
BROAD MARKET EXCHANGE-TRADED FUNDS WITH 30-DAY >35% ORDERED BY RANK:
TQQQ (60/111)
IWM (56/45)
EEM (46/39)
QQQ (43/36)
SPY (39/35)
FUTURES WITH 30-DAY >35% ORDERED BY RANK:
/NG (98/95)
/SI (83/500
/RTY (56/55
/NQ (43/36)
/ZC (43/36)
/ES (39/36)
/CL (33/948)
VIX/VIX DERIVATIVES:
VIX finished the week at 35.93, well in "high volatility" territory. However, the May and June contracts (36.95 and 35.70, respectively), finished in contango (it's been a while), with the rest of the term structure in backwardation.
There are a ton of earnings coming out next week, with the most options liquid plays to be had in AMD (44/71), TWTR (77/80), and FB (59/50).
Pictured here is a delta neutral short strangle in AMD in the June cycle (54 days). Camped out around the 20 delta strikes, it paid 3.12 as of Friday close (5.6% as a function of share price) with break evens at 42.88/73.12. Go defined risk with a five-wide iron condor in the same cycle -- the 42/47/70/75, and you'll get paid 1.48, 29.6% return on capital at max, 14.8% at 50%.
A TWTR June 19th 24/36 short strangle paid 1.83 (6.4% as a function of share price) as of the Friday close; the FB June 19th 165/220, 7.07 (3.7% as a function of share price). Consequently, if you're looking for "buck bang" as a function of share price, your best best is going with the TWTR play, with its higher 30-day.
EXCHANGE-TRADED FUNDS WITH 30-DAY >35% ORDERED BY RANK:
SLV (83/51)
GDXJ (72/79)
GDX (64/63)
EWW (61/60)
XLU (60/40)
EWZ (57/72)
XLE (55/66)
SMH (46/46)
XOP (42/81)
USO (33/192)
USO is going to be undergoing a 1:8 reverse split after the close of markets on April 28th, so you may want to steer clear of entering an options play before then and/or close out any options plays you've got on here to avoid being stuck with nonstandards post-split. As if it wasn't apparent, the juice is in precious metals/miners (SLV, GDX/GDXJ) and oil-related exchange-traded funds (XOP, XLE, USO), with some secondary squeezings to be had out of Mexico (EWW), Brazil (EWZ), and semicons (SMH).
With respect to EWW and EWZ, I considered each for a potential IRA trade, since both pay dividends, although they're only twice a year and somewhat "uneven." (EWW yield shows as 4.93%; EWZ as 5.44%). The EWW June 19th 22 was paying .78 as of Friday close (3.7% return on capital at max), the EWZ June 19th 18, .96 (5.6% return on capital at max), so may consider doing one or the other as a potential aquisitional play.
BROAD MARKET EXCHANGE-TRADED FUNDS WITH 30-DAY >35% ORDERED BY RANK:
TQQQ (60/111)
IWM (56/45)
EEM (46/39)
QQQ (43/36)
SPY (39/35)
FUTURES WITH 30-DAY >35% ORDERED BY RANK:
/NG (98/95)
/SI (83/500
/RTY (56/55
/NQ (43/36)
/ZC (43/36)
/ES (39/36)
/CL (33/948)
VIX/VIX DERIVATIVES:
VIX finished the week at 35.93, well in "high volatility" territory. However, the May and June contracts (36.95 and 35.70, respectively), finished in contango (it's been a while), with the rest of the term structure in backwardation.