GIS Analysis

General Mills Inc. (GIS)

GIS publishes earnings on Thursday before the opening bell.

I shall use options that trade for the last time 24 days hence, on July 21.

Implied volatility stands at 26%, which is 2.4 times the VIX, a measure of the volatility of the S&P 500 index.

GIS’s IV stands in the 58th percentile of its annual range and the 54th percentile of its most recent broad movement.

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XOP Analysis

SPDR S&P Oil and Gas Exploration and Production (ETF) (XOP)

Update 7/12/2017: XOP traced a sideways zig-zag about $2 wide since I entered, in the last. In the last few days it has toyed with my target level but never quite made it. To clear space for other trades and to remove risk, I exited at 22.2% of maximum potential profit. My target was 25%.

Shares rose by 1.3% over 15 days, or a +33% annual rate. The options position produced a +28.6% yield on debit for a +695% annual rate.


XOP has halted its decline with implied volatility still relatively high. I shall look at it as a non-directional trade on the expectation that the price will fluctuate sideways for awhile before making its next move.

I shall use options that trade for the last time 24 days hence, on July 21.

Implied volatility stands at 33%, which is 3.3 times the VIX, a measure of the volatility of the S&P 500 index.

XOP’s IV stands in the 39th  percentile of its annual range and the 75th percentile of its most recent broad movement.

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KBH Analysis

KB Home (KBH)

Update 7/14/2017; KBH rose after earnings were published and thenmoved into a sideways pattern, repeatedly moving into profitability but staying short of my target of 25% of maximum potential profit. As expiration approached I exited at 16.9% of maximum potential profit.

Shares rose by 4.7% over 18 days, or a +96% annual rate. The options position produced a +20.4% yield on debit for a +414% annual rate.


KBH publishes earnings on Tuesday before the opening bell.

I shall use options that trade for the last time 25 days hence, on July 21.

Implied volatility stands at 34%, which is 3.5 times the VIX, a measure of the volatility of the S&P 500 index.

KBH’s IV stands in the 43rd percentile of its annual range and the 95th percentile of its most recent broad movement.

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DRI Analysis

Darden Restaurants Inc. (DRI)

Update 6/27/2017: DRI gapped to the upside after earnings were published but quickly shrinking the chasm to below $3. I exited at 24.9% of maximum potential profit.

Shares showed a net rise of 3.3% over my holding period of a bit less than 24 hours, or a +1,185% annual rate. The options positoin produced a 33.2% yield on debit for a +12,108% annual rate.


DRI publishes earnings on Tuesday before the opening bell.

I shall use options that trade for the last time 25 days hence, on July 21.

Implied volatility stands at 37%, which is 3.8 times the VIX, a measure of the volatility of the S&P 500 index.

DRI’s IV stands at the peak of both annual range and its most recent broad movement.

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KRE Analysis

SPDR KBW Regional Banking ETF (KRE)

Update 7/3/2017: KRE rose for four days after I entered the position, settling into a three-day sideways movement in unprofitable territory. I exited the week the options were due to expire.

Shares rose by 4.34% over 10 days, or a +158% annual rate. The options position produced a -32.7% loss on debit for a -1,195% annual rate.


KRE has sufficiently high implied volatility to qualify for analysis and possibly a trade.

I shall use options that trade for the last time 14 days hence, on July 7.

Implied volatility stands at 25%, which is 2.5 times the VIX, a measure of the volatility of the S&P 500 index.

KRE’s IV stands in the 36th percentile of its annual range and the 60th percentile of its most recent broad movement.

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FB Analysis

Facebook Inc, (FB)

Update 7/10/2017: FB rose for two days after I entered the position and then fell sharply for more than a week before beginning a two-day rise (so far) that brought the position to my target price. I exited at 24.9% of maximum potential profit.

I reached that point by rolling the position forward, as noted in the earlier update below, The results calculation is based on the entire series.

Shares showed a net rise of 0.06% over 18 days, or a +1% annual rate. The options position produced a 33.2% yield on debit for a +672% annual rate.

Update 6/27/2017: I rolled FB forward to a later expiration, leaving the strike prices in the structure unchanged.

The roll cost $0.23 for the exit and brought in a $4.75 premium from the new position, for a net premium for the series of $4.98.

I shall defer calculation of results until the series is complete.


FB shows high implied volatility, making it a candidate for non-directional trade.

I shall use options that trade for the last time 15 days hence, on July 7.

Implied volatility stands at 20%, which is 1.9 times the VIX, a measure of the volatility of the S&P 500 index.

FB’s IV stands in the 38th percentile of its annual range and the 59th percentile of its most recent broad movement.

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