The only volatility contraction earnings play I'm looking at for this coming week is in Macy's, which announces earnings on Wednesday before market open, since it has the implied volatility rank and 30-day metrics I'm looking for (76/56). Here are some Macy's preliminary setups, with the short strangles set up around the 20 delta strikes: August 17th 36/44 short...
This one comes from Robert F. There is some premium here. I DON'T mind buying back both sides after earnings, if the IV really drops. With the tariff chatter and all.. this one could be nice a volatile. BUT, there are a LOT of moving averages helping you on this one... 200 SMA on monthly = for the bear call spread 100 SMA on weekly for the bull put spread
An interesting earnings announcement docket ahead this week: BIDU (rank 57/implied 39) announces Tuesday after market close; AAPL (rank 54/implied 26), Tuesday after market; TSLA (rank 87/implied 70), Wednesday after market; and X (rank 61/implied 53), Wednesday after market. Out of these, TSLA has the kind of volatility metrics I'm looking for in an earnings...
With the vast majority of options-liquid earnings plays in the rear view mirror, premium selling becomes a search for just plain Jane high implied volatility underlyings. This week, TSLA, RIG, X round out out the top implied volatility single names; EWZ, the exchange-traded fund top implied volatility play. Here are some possible nondirectional setups, which are...
With most of the earnings heavy hitters in the rear view mirror, there isn't much to trade this week of quality from an earnings announcement volatility contraction standpoint, with DIS being the standout name. DIS announces on Tuesday after market close with a 30-day implied volatility of 25%, which is in the upper half of its 52-week range. The May 18th 96/97...
$X US Steel - Confirmed head & shoulders . Downside to mid-20s in the near term.
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...
WE are NOW at the 200 SMA on the monthly chart. BIG DEAL. Solid 'resistance'. However, keep your eyes on this level, because X is a very fun stock to trade and with a breakout above that resistance and retest, she could really ride. :) ALSO, X could roll over here. It is a nice resistance. Play it as you see it. Trade the chart, not your heart. I personally.......
I REALLY DO like X long at this or around this area. It's had a nice pull back as we planned over 25 days ago. 100 SMA on a monthly chart is the $29.70 purple line. This drawing, AKA #Mrsquiggles is just my representation of what I think X actually does from here. Either way, one could start consider bull put spreads, put sales or location term accumulation down...
Simple wash, rinse, repeat! :-) If we got called away, it would be for a NICE Gain!!
I should have sold the $32 Nov Call on Wed or Tuesday of last week. :/ Semi hoping X gaps into the green zone, as that would be REALLY strong. The only way I get scared, is if X gaps into the red zone on earnings. Otherwise, we will see some more chop city.
Looking to fade the gap from Thursday - Friday a bit. Could be done with options OR stock. I'll leave open only until 1 Est.
A LOT of Real Life Traders love trading and are in on X bullish (since a while ago) Some are still below their DCA (like me) but I love this bull pop. If I got exercised at $29, it would be for a small gain.
This one was a GORGEOUS buy low, sell high a few days ago. MANY Real Life Traders are in shares. For those who have at least 100, could consider this covered call. I would not mind being exercised up here at all. :-)
There's A LOT of real life traders in this bad boy. Feeling GOOD about today's move. If we got exercised at $31, it would be a decent gain... :-)
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