With earnings in TGT, BBY, and LOW, it's no surprise that implied volatility in the retail ETF, XRT, has ramped up here a bit (sixth month implied volatility rank is 73/implied volatility is 22). That being said, I'm really only looking at BBY for a play given its implied volatility rank/implied volatility (93/48). HTZ also announces earnings and has the right...
If you're going to play anything next week premium selling wise, it's going to be in earnings, because that's all that's really out there volatility-wise. The VIX remains persistently low here, and running a screen for exchange-traded funds with >70% implied volatility rank, and >35% implied volatility yields absolutely nothing. Here's what showed up on my radar...
Normally BBY responds well to earnings, but currently stock is testing 10-year resistance around 39. Probability dictates this will fail and IMO there is a vacuum down to the 33-ish level.
BBY still has to hit L3 marker for the HVF to complete. So there is a strong probability for a short setup. In contrast, there might be a possible Long 123 setup forming down the road as well. For a long position, entry might be @ prior resistances level round 35.44, otherwise if price action compromises support then further downside is expected. Note that 32...
Update from my previous post. Looks like BBY is rallying and will continue to possibly around the $36 PT. Expecting this to hit max PT of $37.50. Searching for conformation of rally continuation such as a test of support, probably around the inner declining dotted line or at the previous high resistance of ~$35. So temporary long until otherwise.
BBY announces earnings on 5/24 (Tuesday) before market open, so look to put on a play shortly before Monday's NY close to take advantage of the implied volatility crush that commonly occurs post-earnings announcement. Here's the preliminary setup, since price may move during the NY session, requiring slight adjustment of the strikes: BBY June 3rd 29.5/35 short...
So this is an Idea Dr. J threw out and said has not lost yet. I figured with the good earnings and the big sell off and considering track record would give a shot. I like the gap up and thus playing the Dec 35 calls into the November shopping run. With market a bit crazy there is risk here and key is to know risk up front at 2.37 per contract that is total risk...
If BBY opens below 34.49 consider using the Retest Gap strategy. To get a free and complete stock trading education go to www.RealLifeTrading.com
Bearish gap. Should roll over and continue bearish after some sideways movements. If it doesn't, and closes above 35.75 more bullish than bearish.
BBY Expected to open at 36.27 for a Perfect Gap N Go. To learn this strategy for free, go to www.RealLifeTrading.com
I am already in a bull put spread on BBY and based on the current options price I am considering Bear call spread 42.5/43.5 - looks like I can get 15% If stock closes above $40.00 I can buy calls and close the position.
BBY expected to open at 37.90 clearing a lot of pivot points. Many profitable traders may exit on open so wait 30 minutes or so for stock to bounce off of 10 or 20 ema