WYNN just had earnings about two weeks ago. Ordinarily, the volatility quickly contracts, but it hasn't in WYNN. With an IVR of 75 and an IV of 62, I can't pass up this play. You can naturally go with an iron condor with the same short strike prices, but I'm going with a short strangle here since I have the buying power to do it: Dec 18th 55/85 short...
Okay, okay, okay, so I stole this idea from Dough ... . I'm not quite using their exact setup (a Dec 18th 31/42 short strangle), as I'm going with a slightly shorter duration. In this particular case, XOP is a sector ETF, so the traditional rule of thumb is to look to sell premium when the IVR is 35 or greater (as compared to individual underlyings, where the...
Well, it's probably not worth videotaping, but with earnings to be announced after hours tomorrow and IVR/IV both at 90+, it's worth selling premium in ... . If you feel the need to videotape that, well, then, go right ahead ... . Due to the price of the underlying, I am going short strangle with this one: Nov 6th 23/34 Short Strangle POP%-age: 74% Max Profit:...
Both TWTR and AAPL announce earnings after the close on 10/27. With TWTR's IVR at 92 and IV at 103, it's a go for a short strangle. AAPL's IV bumped up a little bit today to 51, but it needs to be a bit higher for me to bite on (70+). Here's my TWTR setup as of right now: A Nov 6th 25.5/36.5 Short Strangle POP: 75% Max Profit: $82/contract Risk:...
BABA (IVR 82/IV 83), like COH, announces earnings on 10/27 premarket, so look to put on a play on 10/26 during the New York session. I have looked at both an iron condor setup, as well as a short strangle setup for the Oct 30th expiry. An iron condor is somewhat inflexible on the call side for the Oct 30th expiry, since the calls are five wide 85 and above...
With COH announcing earnings on 10/27 before market open, look to sell premium with a play before 10/26 New York close to take advantage of post-earnings volatility contraction. With an IVR of 98 and an IV of 48, look to sell premium via short strangle due to the price of the underling. I'll look to put on a short strangle with a Oct 30th expiry with short...
The top IVR (52-week ToS) non-individual underlyings (i.e., ETF's) aren't all that great again this week, but you'll notice some familiar names popping up yet again, primarily due to jumpiness in the precious metals and oil markets: XBI (SPDR S&P Biotech ETF): IVR 52/IV 50 (Generally, Poor Options Liquidity) EWZ: (See Linked-To Post Below) XOP (SPDR S&P Oil & Gas...
If you aren't playing or don't like to play earnings, premium selling plays are, well, "at a premium" and hard to come by. EWZ (iShares MSCI Brazil Capped ETF), with an IVR of 59 and an IV of 47, has resurfaced as a possibility. Due to the price of the underlying, the best strategy is via short strangle and even that won't get you a whole lot, but it better than...
As I previously noted in my rolling tested iron condors posts, there are several ways to deal with a tested side, including closing the entire side out for a loss, rolling the tested side out for duration at the same strikes as the original setup and selling an oppositional credit spread against the rolled out tested side as you would ordinarily do (with the short...
With YHOO announcing earnings on 10/20 after market close (and with little volatility in the broader market to take advantage of from a premium selling standpoint), I looked at possible plays ... . After fees and commissions are considered, it is unlikely that I will play Yahoo. A typical 70% probability of profit Iron Condor setup with the Oct 23rd expiry...
IBM announces earnings on 10/19 after the market close. The volatility isn't flashy (currently at 59 IVR/ToS 52-Month), but this isn't one of those underlyings that gets very "excited" from a volatility standpoint anyways. I'll look to put on a directionally neutral iron condor or short strangle some time during tomorrow's New York session, with an...
So my first earnings play this season (YUM) didn't go all that hot ... . Naturally, rolling out for duration and credit is part and parcel of the premium selling game, but like any other kid in the candy store, I just want to take my candy and go ... . Perhaps NFLX will be a different story. With earnings to be announced on 10/14 after the market close and with...
With an IVR of 46 (52 Week TOS) compared to GLD's 21, GDXJ presents the better premium selling opportunity in the "gold sector" than GLD, the standard go-to for plays in the precious metal. Currently, a Nov 27th expiry 16/18/26/28 iron condor yields .43 credit/contract, a probability of profit of 73%, break-evens at 17.57 and 26.43, and will cost you...
MON announces earnings on 10/7 before market open, so you will want to put on a play before the 10/6 NY close to take advantage of the volatility contraction post-10/7 earnings. The stock has been hammered since last earnings, which might lead you to a bullish bias here, in which case you can skew setups to the call side to take advantage of that bias. As usual,...
YUM announces earnings on 10/6 after market close, so if you're going to play this via an options setup, look at getting a fill for whatever you put on prior to the 10/6 New York close. Ordinarily, I trade these using a short strangle or iron condor, with the short call/put legs at or around the 1 standard deviation line for the chosen expiry, which will either...