Although there are quite a few earnings coming up next week, only two catch my eye from a premium selling standpoint: Twitter and U.S. Steel. Twitter announces on Wednesday before market open; has a 30-day implied volatility of 75.19%; and the May 4th 20-delta, 74% probability of profit 27.5/38 short strangle is paying 1.28 at the mid with its defined risk...
STLD, appears to be breaking higher out of the bull flag. With the entire sector moving higher like X, AKS, AA, CENX, I think this is a low risk play here. Should be good as long as we stay above the 50SMA.
STLD looks to be forming a bull flag with upside potential to $50. Trump is bullish on Steel stocks. Could we get a break out soon? I think so.
Some positive divergence here on the weekly RSI as well...it has been quite bearish but I believe this might good buy for a bounce at least. If the trade starts off well and I am up I will likely move to breakeven, especially if the candles are weak. $18.27 also a spot I will watch
... for a 2.23 credit. Metrics: Max Profit: $223/contract Max Loss/Buying Power Effect: $177 BE's: 28.77/33.23 Theta: 6.1 Delta: -1.06 Notes: Earnings announcement today after market close. Will look to manage at 25% max.
With the French primaries in the rear view mirror and some market unease abated due to the result, VIX futures are caving hard as of the writing of this post (the May contract is down 8% to 13.15). This, unfortunately, changes the potential complexion of next week's market for me, since it is likely that implied volatility will dry up somewhat in SPY/SPX and...
X announces earnings tomorrow (Tuesday) after market close, and with its implied volatility rank and implied volatility metrics, it's ripe for a volatility contraction play. Here are two possible setups, which naturally might need to be tweaked this way or that depending on price movement intraday tomorrow. Feb 17th 29/38 Short Strangle Metrics Probability...
Needs to close above to continue move up
Up over 6.00% today and 39.14 is not out of question