5/12 – 3:20 p.m. New York time
I entered no new positions today.
I exited positions in OAS and XRT, each for a profit.
Look for The Week Ahead to be posted on Saturday and Monday’s Live, with prospective trades, to be posted on Sunday.
Month: May 2017
Live: Thursday, May 11, 2017
TEVA Analysis
Teva Pharmaceutical Industries Ltd. (TEVA)
Update 5/11/2017: TEVA zig-zagged sharply in response to its earnings announcement. I exited at a $1.25 debit, or 29.4% of maximum potential profit.
Shares were down 1.7% over a day, or a -627% annual rate. The options position produced a 41.6% yield on debit for a +15,184% annual rate.
TEVA publishes earnings on Thursday before the opening bell.
I shall use the series of weekly options that trade for the last time eight days hence, on May 19.
Implied volatility stands at 39%, which is 3.9 times the VIX, a measure of the volatility of the S&P 500 index.
TEVA’s IV stands in the 54th percentile of its annual range and the peak of its most recent broad movement.
SNAP Analysis
Snap Inc. (SNAP)
Update 5/15/2017: SNAP gapped sharply to the downside after earnings were published and then rose for three subsequent trading days, partially mitigating the loss. I exited for a loss for a $3.75 debit.
Shares declined by 13.7% over five days, or a -1,003% annual rate. The options position produced a -15.7% loss on debiy for a -1,149% annual rate.
SNAP publishes earnings on Thursday after the closing bell.
I shall use the series of weekly options that trade for the last time eight days hence, on May 19.
Implied volatility stands at 74%, which is 7.4 times the VIX, a measure of the volatility of the S&P 500 index.
SNAP’s IV stands at its peak since the stock began trading publicly on March 2.
M Analysis
Macy’s (M)
Update 5/15/2017: M gapped sharply to the downside the immediately after earnings were published and continued to decline in the ensuing two trading days. I exited the position for a debit of $3.65.
Shares declined by 19.9% over five days, or a -1,437% annual rate. The options position produced a -42.5% loss on debit for a -3,100% annual rate.
M publishes earnings on Thursday before the opening bell.
I shall use the series of weekly options that trade for the last time nine days hence, on May 19.
Implied volatility stands at 47%, which is 4.7 times the VIX, a measure of the volatility of the S&P 500 index.
M’s IV stands in the 88th percentile of its annual range and at the peak of its most recent broad movement.
KSS Analysis
Kohl’s Corp. (KSS)
Update 5/11/2017: KSS zig-zagged sharply after earnings were published, ending up at my exit down 2.5%, or an annual rate of 925%. The options position produced a 45.7% yield on debit for a +16,686% annual rate.
The exit price was a $2.10 debit, or 31.4% of maximum potential profit.
KSS publishes earnings on Thursday before the opening bell.
I shall use the series of weekly options that trade for the last time nine days hence, on May 19.
Implied volatility stands at 48%, which is 4.8 times the VIX, a measure of the volatility of the S&P 500 index.
KSS’s IV stands in the 78th percentile of its annual range and the 90th percentile of its most recent broad movement.
WFM Analysis
Whole Food Market Inc. (WFM)
WFM publishes earnings on Wednesday after the closing bell.
I shall use the series of weekly options that trade for the last time nine days hence, on May 19.
Implied volatility stands at 37%, which is 3.4 times the VIX, a measure of the volatility of the S&P 500 index.
WFM’s IV stands in the 62nd percentile of its annual range and at the 87th percentile of its most recent broad movement.
JWN Analysis
Nordstrom Inc. (JWN)
Update 5/15/2017: JWN declined sharply after earnings were published and gapped down further after earnings were published. I exited the position for a $7.11 debit.
Shares declined by 15.3% over five days, or a -1,116% annual rate. The options position produced a -51.6% loss on debit for a -3,768% annual rate.
JWN publishes earnings on Thursday after the closing bell.
I shall use the series of weekly options that trade for the last time nine days hence, on May 19.
Implied volatility stands at 46%, which is 4.6 times the VIX, a measure of the volatility of the S&P 500 index.
JWN’s IV stands in the 63rd percentile of its annual range and the 97th percentile of its most recent broad movement.
Live: Wednesday, May 10, 2017
5/10 – 3:05 p.m. New York time
A busy day of trading.
I entered five new positions: KSS, M, SNAP, TEVA and JWN. I entered into the last symbol in the list, JWN, a day earlier than normally would have. I exited my position in KRE.
I analyzed WFM but declined to take the trade. I have entered an exit order on OAS at my target price. I shall leave the order active and update if it is filled.
WIX Analysis
Wix.com (WIX)
WIX publishes earnings on Wednesday before the opening bell.
I shall use the series of weekly options that trade for the last time 10 days hence, on May 19.
Implied volatility stands at 89%, which is 9.1 times the VIX, a measure of the volatility of the S&P 500 index.
WIX’s IV stands in the 94th percentile of its annual range and the 93rd percentile of its most recent broad movement.
Tim Bovee, Private Trader 
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