HRB Analysis

Update 12/28/2016: HRB held to a sideways trend  after earnings were published. Time decay and a decline in implied volatility eventually brought to a sufficient profit by my standards, and I exited at 25% of the maximum potential gain.

Shares declined by 1.1% over 21 days, or a -19% annual rate. The optons position produced a 33.3% yield on debit for a +579% annual rate

(The analysis was shortened because of technical problems with Blogger, which hosted Private Trader at the time.)

I have entered an earnings play on HRB using the JAN series of options, which trade for the last time 44 days hence on Jan. 20.

The position is an iron fly, short the $23 calls and $23 puts, long the $25 calls and $21 puts

Premium: $1.40.

By Tim Bovee, Portland, Oregon, Dec. 7, 2016

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