WHAT I'M LOOKING AT NEXT WEEK (10/24) -- BANC, EWW, XBI
Focus in the short term (which is 25-45 DTE for me) will be on ETF's, although opportunities could crop up with earnings (still hoping for a TWTR dip post-earnings to go long via short puts).
Here's what came up on my high IVR/IV screen:
BANC, IVR's 100/IV 100. Options, however, are crappy (monthlies only), but you can get something decent for a 20 delta short put if you're willing to go all the way out to Jan (bullish assumption). The drawback -- in addition to the fact that it only has monthlies -- is that it's a bank. Banks generally aren't known for high volatility, so if you get put the stock, it may be difficult to write calls for something decent to reduce your cost basis if vol collapses at some point going forward here. Things like short strangles or iron condors (which would be vol contraction plays) are cumbersome due to the unavailability of dollar wide strikes.
EWW (the Mexican ETF) IVR 97/IV 32. The general play on this has been bullish on the assumption that Hillary will win, since that's good for Mexico (Donald has said he'll rescind NAFTA, which would be bad for Mexico). I could see further upside if Hillary wins, although it may have priced some of that in already. The Dec 18th 47 short put brings in .70/contract at the mid (bullish assumption; straight premium selling or precursor to covered call). Although this is not the most liquid thing in the world, nondirectional strats like iron condors, short strangles, and iron flies are also workable here.
XBI (the biotech ETF) IVR 88/IV 40. Biotech's been getting a bit of whooping here, and it may not be over, since the notion is that Hillary's bad for pharma and for biotech. She's not keen on high drug prices and has vowed to "do something" to lower drug costs (good luck with that). In any event, the Dec 18th 52 short put brings in 1.07/contract at the mid. (Bullish assumption; straight premium selling or precursor to covered call). A short strangle or iron condor/fly are also doable here.
Here's what came up on my high IVR/IV screen:
BANC, IVR's 100/IV 100. Options, however, are crappy (monthlies only), but you can get something decent for a 20 delta short put if you're willing to go all the way out to Jan (bullish assumption). The drawback -- in addition to the fact that it only has monthlies -- is that it's a bank. Banks generally aren't known for high volatility, so if you get put the stock, it may be difficult to write calls for something decent to reduce your cost basis if vol collapses at some point going forward here. Things like short strangles or iron condors (which would be vol contraction plays) are cumbersome due to the unavailability of dollar wide strikes.
EWW (the Mexican ETF) IVR 97/IV 32. The general play on this has been bullish on the assumption that Hillary will win, since that's good for Mexico (Donald has said he'll rescind NAFTA, which would be bad for Mexico). I could see further upside if Hillary wins, although it may have priced some of that in already. The Dec 18th 47 short put brings in .70/contract at the mid (bullish assumption; straight premium selling or precursor to covered call). Although this is not the most liquid thing in the world, nondirectional strats like iron condors, short strangles, and iron flies are also workable here.
XBI (the biotech ETF) IVR 88/IV 40. Biotech's been getting a bit of whooping here, and it may not be over, since the notion is that Hillary's bad for pharma and for biotech. She's not keen on high drug prices and has vowed to "do something" to lower drug costs (good luck with that). In any event, the Dec 18th 52 short put brings in 1.07/contract at the mid. (Bullish assumption; straight premium selling or precursor to covered call). A short strangle or iron condor/fly are also doable here.