Thursday’s Prospects

Out of four possible prospects, only JWN has sufficiently high liquidity and implied volatility to warrant further analysis.

BIDU and COG have low implied volatility relative to both the annual range and the most recent broad movement. HPE has insufficient liquidity on its options grid.

I intend to analyze JWN on Thursday as a potential earnings play. I’ll monitor BIDU, COG and HPE and shall resurrect any that become viable during the day. Otherwise, they’re off my prospects list.

By Tim Bovee, Portland, Oregon, Feb. 22, 2017

 

RRC Analysis

Range Resources Corp. (RRC)

RRC publishes earnings on Wednesday after the closing bell.

I shall use the MAR series of options, which trades for the last time 23 days hence, on March 17. The APR series options, trading for the first time today, were too illiquid for my taste.

Implied volatility stands at 45%, which is !0 times the VIX, a measure of the volatility of the S&P 500 index.

RRC’s IV stands in the 17th percentile of its annual range and the 89th percentile of its most recent broad movement.

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TSLA Analysis

Tesla Inc. (TSLA)

TSLA publishes earnings on Wednesday after the closing bell.

I shall use the APR series of options, which trades for the last time 58 days hence, on April 21.

Implied volatility stands at 46%, which is 3.9 times the VIX, a measure of the volatility of the S&P 500 index.

TSLA’s IV stands in the 41st percentile of its annual range and at the peak of its most recent broad movement.

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Wednesday’s Agenda

Two of my prospects, RRC and TSLA, have sufficiently high implied volatility to qualify for further analysis and possibly trades.

Their APR-series options are trading for the first time today. Although open interest remains lower than I like, I shall bend the rules to open a trade, given the rapid growth of options liquidity for the series.

The third prospect, LB, has IV that remains a bit short of where it needs to be to support a trade. I’ll continue to monitor it during the day, but if IV is unimproved, then I won’t do further analysis.

By Tim Bovee, Portland, Oregon, Feb. 22, 2017

 

Wednesday’s Prospects

Newly minted APR-series options grids have been added to several symbols that are publishing earnings for acton on Wednesday. They are TSLA, RRC and LB. The options expiring in April are my preferred vehicle at present.

None of the APR grids show any open interest as of yet. TSLA has the highest share volume of the three and so is most likely to be tradable. I shall make a final decision on analysis of the three prospects after the opening bell.

By Tim Bovee, Portland, Oregon, Feb. 21, 2017

 

Tuesday’s Outcomes

Implied volatility on TJX rose sufficiently during the day to support analysis and a trade.

I have an order in to exit BP at my target price.

However, it has not yet been filled and appears unlikely to be. None the less, I shall leave the order active and, if it is filled, update Outcomes after the closing bell.

By Tim Bovee, Portland, Oregon, Feb. 21, 2017

 

TJX Analysis

 

The TJX Companies Inc. (TJX)

TSX publishes earnings on Wednesday before the opening bell.

I shall use the APR series of options, which trades for the last time 59 days hence, on April 21.

Implied volatility stands at 23%, which is 1.9 times the VIX, a measure of the volatility of the S&P 500 index.

TJX’s IV stands in the 40th percentile of its annual range and the 51st percentile of its most recent broad movement.

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The Week Ahead: Holiday, homes, manufacturing, FOMC minutes

U.S. markets will be closed on Monday for the President’s Day holiday.

Two residential real estate reports will be published during the week: Existing home sales on Wednesday and new home sales on Friday, each at 10 a.m. New York time.

Also out, the Purchasing Managers Institute manufacturing index flash report on Tuesday at 9:45 a.m.

The Federal Open Market Committee minutes ftom money regulators’ Feb. 1 meeting will be released on Tuesday at 2 p.m.

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