Box Inc. (BOX)
Update 6/5/2017: BOX gapped to the upside after earnings were published, stayed high for a second day and then dropped back to only slightly above its pre-earnings price. I exited at 25% of maximum profit, my target level.
Shares showed a net rise of 4.7% over five days, or a +341% annual rate. The options position produced a 38.4% yield on debit for a +2,655% annual rate.
BOX publishes earnings on Thursday after the closing bell.
I shall use options that trade for the last time 16 days hence, on June 16.
Implied volatility stands at 47%, which is 4.3 times the VIX, a measure of the volatility of the S&P 500 index.
BOX’s IV stands in the 63rd percentile of its annual range and at the peek of its most recent broad movement.
The price used for analysis was $18.47.
The premium is 35% of the width of the position’s wings.
The risk/reward ratio is 1.9:1.
Decision for My Account
I have entered an order on BOX as described above. The stock at the time of entry was priced at $18.42.
By Tim Bovee, Portland, Oregon, May 31, 2017