MO Analysis

Altria Group Inc. (MO)

Update 3/3/2017: MO rose continually after earnings were published, quickly moving above the zone of profitability. As options expiration and an ex-dividend date both approached, I exited for a loss.

Shares rose by 5.9% over 30 days, or a 71% annual rate. The options position produced a 34.0% loss on debit for a -414% annual rate.


 

MO publishes earnings on Wednesday before the opening bell.

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AAPL Analysis

Apple Inc. (AAPL)

Update Feb. 8, 2017: AAPL gapped upward after earnings were published, putting it beyond the profit zone of my position. It continued to rise, more moderately, thereafter. I exited the position to avoid the likelihood of assignment when shares went ex-dividend on Feb. 9.

Shares rose by 8.9% over eight days, or a +408% annual rate. The options position produced a 35.5% loss on debit for a -1,620% annual rate.


 

AAPL publishes earnings on Tuesday after the closing bell.

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Monday’s Outcomes

I entered positions on PFE and XOM timed to coincide with earnings announcements. XOM was not initially on my agenda today because of low implied volatility relative to IV range, but it has been a day of rising volatility in the markets, and XOM move up to meet my standards.

By Tim Bovee, Portland, Oregon, Jan. 30, 2017

 

XOM Analysis

Exxon Mobil Corp. (XOM)

Update 2/6/2017: XOM’s price fell after earnings missed the Street estimate by a wide margin. The stock goes ex-dividend on Feb. 7, and I exited at 21.4% of the maximum potential gain to avoid the risk of early assignment.

XOM shares declined by 1.7% over seven days, or a -87% annual rate. The options positions produced a 21.4% yield on debit for a +1,417% annual rate.


 

XOM publishes earnings on Tuesday before the  opening bell.

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PFE Analysis

Pfizer Inc. (PFE)

Update 1/31/2017: Prices rose then dropped back after earnings wee published. Implied volatility fell sharply. I chose to exit PFE because it goes ex-dividend on Feb. 1, and i’m wanting to avoid the likelihood of early assignment.

Shares rose by 0.8% over one day, or a +281% annual rate. The options position produced a 6.6% yield on debit for a +2,413% annual rate.


 

PFE publishes earnings on Tuesday before the opening bell.

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The Week Ahead: Money and jobs

 

The Federal Open Market Committee holds its first money policy meeting of the Trump era, announcing its decisions on Wednesday at 2 p.m. New York time.

It is also a week for high-impact economic reporting.

The employment situation report covering the first month of 2017 will be published on Friday at 8:30 a.m.

The less comprehensive private-sector ADP employment report, treated by traders as an  indicator of what the government report will show, will be published on Wednesday at 8:15 a.m.

Also out are are personal income and outlays on Monday at 8:30 a.m. and the Institute of Supply Management manufacturing survey on Wednesday at 10 a.m.

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