Live: Friday, June 23, 2017

6/22 – 8:30 p.m. New York time

I have no prospective earnings plays for action on Friday. SCHN is a possibility, but it lacks weeklys among its options inventory and I given the volume of prospects I have had each week, I’m reluctant to tie up the funds for the longer term requires by the monthlys.

I have seven potential direction-neutral plays unrelated to earnings announcements: XOP, KRE, OIH, XLE, COST, FDX and NKE. I shall be looking at these as needed to keep my portfolio size up throughout the week to come.

Friday marks a week before the June 30 options expire, and I shall be looking to exit or roll my holdings in that series, either Friday or the subsequent Monday. They are ACN, BBBY, BBRY, MSFT, NFLX, NVDA, ORCL, RHT and WGO.

By Tim Bovee, Portland, Oregon, June 22-23, 2017

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FB Analysis

Facebook Inc, (FB)

FB shows high implied volatility, making it a candidate for non-directional trade.

I shall use options that trade for the last time 15 days hence, on July 7.

Implied volatility stands at 20%, which is 1.9 times the VIX, a measure of the volatility of the S&P 500 index.

FB’s IV stands in the 38th percentile of its annual range and the 59th percentile of its most recent broad movement.

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FINL and SONC Analyses

Finish Line Inc. (FINL)

Sonic Corp. (SONC)

FINL publishes earnings on Friday before the opening bell and SONCĀ on Thursday after the closing bell.

Neither symbol has weekly options. The nearest monthly series expires on July 21, which is 28 days out,

As busy as it has been, rather than risk tying up funds for the longer period, I shall forego these two trades without a full analysis.

By Tim Bovee, Portland, Oregon, June 22, 2017

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BBRY Analysis

BlackBerry Ltd. (BBRY)

BBRY publishes earnings on Friday before the opening bell.

I shall use options that trade for the last time eight days hence, on June 30.

Implied volatility stands at 63%, which is 6.1 times the VIX, a measure of the volatility of the S&P 500 index.

BBRY’s IV stands at the peak of its annual range and the 97th percentile of its most recent broad movement.

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BBBY Analysis

Bed Bath & Beyond Inc. (BBBY)

BBBY publishes earnings on Thursday after the closing bell.

I shall use options that trade for the last time eight days hence, on June 30.

Implied volatility stands at 41%, which is 3.9 times the VIX, a measure of the volatility of the S&P 500 index.

BBBY’s IV stands at the peak of both its annual range and its most recent broad movement.

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CCL Analysis

Carnival Corp. (CCL)

Update 6/22/2017: CCL’s price was little affected by its earnings announcement. A decline in implied volatility allowed me to exit at 27% of maximum potential profit.

Shares showed a net decline of 0.2% over the one day, entry to exit, or a -55% annual rate. The options position produced a 36.3% yield on debit for a +13,231% annual rate.


CCL publishes earnings on Thursday before the opening bell.

I shall use options that trade for the last time nine days hence, on June 30.

Implied volatility stands at 23%, which is 2.1 times the VIX, a measure of the volatility of the S&P 500 index.

CCL’s IV stands in the 26th percentile of its annual range and the 83rd percentile of its most recent broad movement.

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ACN Analysis

Accenture Plc (ACN)

ACN publishes earnings on Thursday before the opening bell.

I shall use options that trade for the last time nine days hence, on June 30.

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

ACN’s IV stands in the 57th percentile of its annual range and the 85th percentile of its most recent broad movement.

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ORCL Analysis

Oracle Corp. (ORCL)

ORCL publishes earnings on Wednesday after the closing bell.

I shall use options that trade for the last time nine days hence, on June 30.

Implied volatility stands at 27%, which is 2.5 times the VIX, a measure of the volatility of the S&P 500 index.

ORCL’s IV stands at the peak percentile of both its annual range and its most recent broad movement.

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HAIN Analysis

Hain Celestial Group Inc. (HAIN)

Update 6/22/2017: HAIN underwent a $3 whipsaw after earnings were published, with the net impact of a decline from its pre-earnings close. A sharp drop in implied volatility allowed an exit at 25% of maximum potential profit.

Shares showed a net rise of 2.5% over a day, entry to exit, or a +917% annual rate. The options position produced a +33.2% yield on debit for a +12,122% annual rate.


HAIN publishes earnings on Thursday before the opening bell.

I shall use options that trade for the last time nine days hence, on June 30.

Implied volatility stands at 57%, which is 5.2 times the VIX, a measure of the volatility of the S&P 500 index.

HAIN’s IV stands in the 69th percentile of its annual range and the 85th percentile of its most recent broad movement.

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