Volatility in the broader indices has been on the ebb all week. What does this mean for premium selling? Well, it means that the premium in index ETF's like SPY, IWM, QQQ, and DIA is less rich and therefore not as attractive for selling premium. Ordinarily, when this occurs, I turn my attention somewhat away from broad market index ETF plays or plays in...
PCLN announces earnings tomorrow before market open, so look to put on this play before today's close. As noted in my post early this week regarding this week's earnings play prospects, PCLN's options are somewhat illiquid, so look for a fill of any setup at or above the mid price and resist the urge to chase price for a fill ... . You can naturally play with...
BIDU announces earnings "some time tomorrow", so it could be either before or after market; if you want to play it, look to put on a setup before today's market close. One thing I would note is that the bid/ask spreads aren't that great, implying that the options' liquidity isn't the best in the world, so I would look to put on a play at the mid price, but not to...
I ground through a large number of next week's earnings announcements, thinking I might find a nugget or two to play via options, but was somewhat disappointed. I've never played ESRX before, which announces on Tuesday after market close, probably because I'm not a fan of anything remotely pharmaceutical for these plays beyond the "uber" names like LLY and AMGN. ...
Failed to notice this prior to closing. :( Some big boy option trading firm expecting an explosive move on TEVA post earnings. a total of 8307 Long Straddle Spread contracts were executed for a price of $3.65. That's approx = $3,000,000. For those who needs a further explanation, This is a non directional bet (either bullish or bearish) for the stock to open...
TSLA announces earnings tomorrow after market close, so look to put on any volatility contraction play (short strangle/iron condor) before then. You'll naturally want to tweak these strikes if there is any movement during the market day ... . Short Strangle Feb 19th 111/180 short strangle Probability of Profit: 74% Max Profit: $404/contract Buying Power Effect:...
Oil and Gas stocks this earning has a lot of premium cooked up in the options. 2 x Premium than the expected moves. Some Companies reported positive earnings and guidelines, while others did not. Oil Sectors around earnings are a bit tricky to trade. Some people with 10-15 years won't touch these. If you like to take a dip and have fun like me. Go for it....
DIS announces earnings today after market hours, so look to put on any setup before New York close. Here are the two "classic" setups: Feb 19th 82.5/100 short strangle Probability of Profit %: 74% Max Profit: $127/contract Buying Power Effect: Undefined Feb 19 77.5/82.5/100/105 iron condor Probability of Profit %: 72% Max Profit: $86/contract Buying Power...
Unfortunately, I was fiddling around so much with setups in index ETF's and GLD last week that I didn't get a chance to do a single earnings play ... But it's all good. Naturally, if volatility remains high in SPY, DIA, QQQ, and/or IWM, I'll continue to work those. However, while I'm waiting for some kind of bounce to occur to leg into the short call side of...
FB announces earnings tomorrow after market close, so look to put on any play in the final hours of the NY session. Here are the two possible plays that may naturally require strike adjustment in light of any movement the underlying experiences during the trading day: FB Feb 5th 81.5/87.5/107/113 $500 BP Iron Condor Probability of Profit %: 69% Max Profit:...
BABA announces earnings on Thursday before market open, so look to put on any play in the final hours of the NY session on Tuesday. Here is one possible play that may naturally require strike adjustment in light of any movement the underlying experiences during the trading day: BABA Feb 5th 61.5/78 Short Strangle Probability of Profit %: 70% Max Profit:...
I don't know what Apple will do tomorrow, but it's been under fire lately with huge price targets and lots and lots of cash. Apple often throws surprises. I bought weekly options and am just looking for a violent move to either side.
AAPL announces earnings tomorrow after market close, so look to put on a play before the end of NY trading. Here are two possibles: AAPL Feb 5th 84/89.5/110/116 iron condor Probability of Profit %: 66% Max Profit: $93/contract Buying Power Effect: ~$507 Break Evens: 88.57/110.93 AAPL Feb 5th 89.5/110 short strangle Probability of Profit %: 68% Max Profit:...
So the FED meets this week on Tuesday and will make some statement on Wednesday or something like that. Trading volume is light, AAPL has earnings coming out mid week. The market seems quiet... so is it? Often if the market is quiet, I check some of my favorite freak out stocks (big movers). Here is a great example of what a really quiet day looks like... GOOGL...
This is a "kid in a candy store" week, with a good selection of earnings plays to choose from: AAPL: Tuesday, after market close BA: Wednesday, before market open FB: Wednesday, after market close BABA: Thursday, before market open CAT: Thursday, before market open AMZN: Thursday, after market close MSFT: Thursday, after market close I'll post setups on Tuesday...
NFLX announces earnings on Tuesday 1/19 after market, so look to put on any premium selling play shortly before NY close. Here are two possible setups, which may have to be tweaked, depending on price movement in the underlying: Jan 29 80/128 short strangle Probability of Profit %: 77% Max Profit: $246/contract Buying Power Effect: ~$1041 Break Evens:...
GS announces earnings on Wednesday before open, so look to put on this play before Tuesday market close. Here are the plays: Jan 29 142/170 short strangle Probability of Profit %: 76% Max Profit: $180/contract Buying Power Effect: ~$1749 Break Evens: 140.20/171.80 Jan 29 138/143/167.5/172.5 iron condor Probability of Profit %: 69% Max Profit:...
CREE announces earnings on 1/19 after market close, so look to put on any premium selling play before the session ends to take advantage of a post-earnings announcement volatility contraction. Ordinarily, when a play won't yield at least a 1.00 credit for a 1 standard deviation short strangle or iron condor setup, I just pass it over. It is, after all, earnings...