AVGO announces earnings tomorrow before market close, and it looks to be a juicy one. Although its IV rank is 56, this underlying is volatile, with an IV currently at 70. Because I have the buying power available, I am going to go short strangle, but wider than usual to hopefully avoid a debacle at the end of earnings season. It's gone pretty good this season...
With an IVR/IV of 100/101 and price within 5% of its 52-week low, I'm looking for a 45 DTE play in this extremely liquid, beaten down underlying to bridge the gap between earnings seasons, as well to ride out what appears to be a thin market opportunity wise for premium selling. SWN Covered Call Buy 100 shares Sell Jan 15 9 short call Looking for a 7.92 fill for...
The last play I found for next week is ULTA (IVR/IV 71/48). It announces earnings on Thursday after market close. The unfortunate thing is that weeklies aren't available, but the Dec expiry is near enough in time to not be too much of a problem. Here's the setup, which may need to be tweaked between Monday's open and the announcement: Dec 18 150/190 short...
AMBA (IVR/IV 48/92) announces earnings on Thursday, 12/3, after market close, so look to put on any play before NY close on that day. In this particular case, the IV is higher than the IVR (which is in the 48th percentile for the IV range for the past 52-weeks. so the IVR could conceivably pop even higher preearnings than it is currently; this will make for even...
MDT's current IVR/IV (35/29) doesn't make it worthwhile for a premium selling play; the standard setup (1 SD short strangle, 72/80.5 Dec 11 expiry currently only goes for a .54 credit), so its volatility will need to pop either pre-earnings or post in order for me to bother with it. Playing it to stay within its "expected move" of between 74 and 79 (Dec 11th...
AVGO (IVR/IV 52/61) announces earnings on Wednesday (12/2) after market close, so look to put on a play before market close if you want to take advantage of the volatility crush post-earnings. Here's the standard setup, which in all likelihood will have to be tweaked between now and earnings: Dec 11 115/145 short strangle POP%: ~70%+ Max Profit:...
Unfortunately, there isn't much worthwhile left to play this earnings season in terms of premium selling. Here's what I'm looking at in underlyings that have fairly good liquidity in their options and that offer weekly option expiries: QIHU -- announces earnings on 11/30 (before/after to be determined) (the only way I'll play this one is if it is Monday after...
DE (IVR/IV 72/40) announces earnings on Wednesday morning before market open, so if you're going to play this, look to put on your setup on Tuesday before market close. Here's my tentative setup, which is subject to tweaking depending on whether it moves much in Tuesday's session: Dec 11th 68/81.5 short strangle POP%: 75% Max Profit: $107/contract BPE:...
Post-earnings, there is still enough juice in a premium selling play in GPRO to make it a worthwhile play to bridge the gap between earnings seasons (IVR/IV 58/75). Now that the underlying is price at about $20, the only way to go is via short strangle: Jan 15 15/26 short strangle for a 1.06 credit fill POP%: 74% Max Profit: $106 Buying Power Effect:...
As with the FL play, IVR/IV in WSM remains high post-earnings. Similarly, this is one of those issues that doesn't offer weeklies, so I'll have to go farther out in time than usual to find good strikes. Here's the play: WSM Jan 15 55/72.5 short strangle for a 1.05 credit POP%: 76% Max Profit: $105 BPE: ~$656 BE's: 53.95/73.55 With both this and the FL play, I...
Having just announced earnings, volatility in FL remains high (IVR/IV 93/36), so I'm looking to put on a premium selling play. Unfortunately, FL doesn't have weeklies, so I'm going to have to go farther out than usual to take advantage of decent strike prices that are sufficiently far out enough to allow the trade to breathe. Here's the setup I'm look for a fill...
Both GMCR and CRM announce their respective earnings on Wednesday AMC (after market close) and both look to be 1.00 plus credit ($100/contract) earnings plays, so keep an eye on them through Wednesday's NY session and look to put on plays before Wednesday close if that's what you're going to do ... . I have repeatedly gone at WMT and LOW to see whether I can...
TGT (IVR/IV 100/48) announces earnings on Wednesday before market open (BMO), so look to put on any play on Tuesday before NY close. Nov 27 65/77.5 short strangle POP%: 75% Max Profit: $124/contract BPE: ~$948 (off hours; this may change on market open). BE's: 63.76/78.74 Look to cover at 50% max profit and redeploy your buying power again elsewhere ... .
I'm not going to play this particular one, as I've already got more than my fair share of oil and gas plays on at the moment (OIH, XOP, HES), but IVR/IV hasn't been this high in XOM in quite some time (79/26). Here's what I would do were I not so heavily into the sector right now: Dec 31st 72/84.5 short strangle for 2.01 credit POP%: 74% Max Profit: $201 per...
Another post-earnings play: CAT, with an IVR of 72 and an IV of 28. Naturally, a lot could change between now on Monday's open, but it doesn't hurt to think ahead. Here's the play: Dec 31st 63/76 short strangle for 1.65 credit POP%: 76% Max Profit: $165 per contract BPE: ~$820/contract BE's: 61.35/77.65
With a dwindling earnings calendar and some buying power to put to good use, I'm looking to go where the IVR/IV takes me. With an IVR of 74 and fairly decent IV of 43, HES popped up toward the top of the Dough "Notable Stocks" grid (sorted by IVR). Here's my set up: Dec 24 51/68 Short Strangle POP%: 75% Max Profit: $150/contract BPE: ~$597/contract BE's:...
In spite of the fact that I think "the fat lady has sung" for this particular week of earnings (see post below), I did briefly consider playing JWN (Nordstrom) because it came up on the Dough "High Options Volume" grid and shows an IVR/IV of 100/75. It announces earnings on 11/12 after market close. I looked at Nov 20th expiry setups and don't like what I see,...
With this week's "meaningful" earnings plays (and by "meaningful," I mean worth more than 1.00 credit) all but over, I'm looking into what could be productive for next week, and they are HD, WMT, CRM, GMCR, and TGT. While you naturally can play some of the earnings for issues that are valued less than $50, you'll find that the vast majority of the time you're...