Although AAPL and GILD announce earnings next week, the only earnings announcement that interests me from a premium selling standpoint is TSLA, with a background implied volatility of over 65%.
The 73% probability of profit May 11th 255/330 short strangle is paying 5.83 at the mid (off hours quotes) with its defined risk counterpart, the 68% probability of profit May 11th 250/255/330/335 iron condor paying 1.06, which is less than I'd like to see out of a 5-wide.
On the exchange-traded fund front, most of the most liquid funds are sub-35% implied volatility, which generally makes for less than compelling premium selling plays. For what it's worth, however, the top five ranked by implied volatility are: XOP (30.4%), OIH (30.2%), EWZ (27.4%), GDXJ (25.5%), and FXI (23.1%). I'm already in XOP and GDX plays, so I might consider having another go at "the Brazilian" in the June cycle -- the June 15th 39/47 short strangle (18 delta) is paying .77. Naturally, more aggressive delta strikes pay more, and it may be amenable to a short straddle/iron fly, depending on your account size, risk appetite, and patience for managing an underlying that seems to whip all over the place on occasion ... .
Alternatively, I might go with another net credit double diagonal due to setup flexibility over a static one-off play, this time in the fairly broad market EEM, which has been closely tracking FXI of late, but is of greater liquidity: the June/Sept 44/47/47.5/50.5 double net credit diagonal is .26 at the mid for a three-wide, and I'd probably look to bail on it at 20% the width of the 3.00 wings ... .
I'll also look at bullish directional shots in IYR, XLI, XHB, and/or XLP, which appear to be the weakest of the sectors currently. Pricing those out in non-New York hours tends to be non-productive since the deep-in-the-money back months show wide bid/ask in off hours, so it's tough to tell how much you're going to have to commit buying power wise to play ... .
The 73% probability of profit May 11th 255/330 short strangle is paying 5.83 at the mid (off hours quotes) with its defined risk counterpart, the 68% probability of profit May 11th 250/255/330/335 iron condor paying 1.06, which is less than I'd like to see out of a 5-wide.
On the exchange-traded fund front, most of the most liquid funds are sub-35% implied volatility, which generally makes for less than compelling premium selling plays. For what it's worth, however, the top five ranked by implied volatility are: XOP (30.4%), OIH (30.2%), EWZ (27.4%), GDXJ (25.5%), and FXI (23.1%). I'm already in XOP and GDX plays, so I might consider having another go at "the Brazilian" in the June cycle -- the June 15th 39/47 short strangle (18 delta) is paying .77. Naturally, more aggressive delta strikes pay more, and it may be amenable to a short straddle/iron fly, depending on your account size, risk appetite, and patience for managing an underlying that seems to whip all over the place on occasion ... .
Alternatively, I might go with another net credit double diagonal due to setup flexibility over a static one-off play, this time in the fairly broad market EEM, which has been closely tracking FXI of late, but is of greater liquidity: the June/Sept 44/47/47.5/50.5 double net credit diagonal is .26 at the mid for a three-wide, and I'd probably look to bail on it at 20% the width of the 3.00 wings ... .
I'll also look at bullish directional shots in IYR, XLI, XHB, and/or XLP, which appear to be the weakest of the sectors currently. Pricing those out in non-New York hours tends to be non-productive since the deep-in-the-money back months show wide bid/ask in off hours, so it's tough to tell how much you're going to have to commit buying power wise to play ... .