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.

Premium:	$1.05	Expire OTM
BOX-iron condor	Strike	Odds	Delta
Long	22.00	92.5%	9
Break-even	20.05
Short	19.00	62.8%	41
Puts
Short	18.00	55.8%	40
Break-even	16.05
Long	15.00	91.8%	6

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