I have three prospective earnings play on my desk for Thursday: AXP, GE and IBM.
GE has extremely low implied volatility compared to both its annual range and its most recent broad movement. It is unlikely to qualify for further analysis, but I’ll check it in the morning to be sure.
With fewer than 30 days until expiration remaining on the FEB options, I am moving to the MAR options as my primary vehicle. However, AXP has no MAR options on its grid, so I shall use the FEB options. The shorter period for time decay to occur will lessen the premium a bit.
By Tim Bovee, Portland, Oregon, Jan. 18, 2017