7/26 – 6:20 p.m. New York time
I have updated the analyses of my exits, GLW and KO, with results.
Month: July 2017
KO Analysis
The Coca-Cola Co, (KO)
Update 7/26/2017: KO whipsawed within a dollar’s range after earnings were published. In order to clear space in my account for further trades, I exited below target at 17% of maximum potential profit.
Shares showed a net declined of 0.6% over my holding period of less than a day, or a -211% annual rate. The options position produced a 20.0% yield on debit for a +7,300% annual rate.
KO publishes earnings on Wednesday before the opening bell.
I shall use options that trade for the last time 10 days later, on Aug. 4.
Implied volatility stands at 14%, which is 1.5 times the VIX, a measure of the volatility of the S&P 500 index.
KO’s IV stands in the 41st percentile of its annual range and at the peak of its most recent broad movement.
BA Analysis
The Boeing Co. (BA)
Update 7/31/2017: BA gapped upward by $23 after earnings were published and rose an additional $23 in the ensuing two trading days. I exited for a loss as expiration approached.
Shares rose by 137% over six days, or an 834% annual rate. The options position produced a -52.4% loss on debit for a -3,190% annual rate.
BA publishes earnings on Wednesday before the opening bell.
I shall use options that trade for the last time 10 days later, on Aug. 4.
Implied volatility stands at 21%, which is 2.3 times the VIX, a measure of the volatility of the S&P 500 index.
BA’s IV stands in the 49th percentile of its annual range and the 87th percentile of its most recent broad movement.
GLW Analysis
Corning Inc. (GLW)
Update 7/26/2017: GLW fell a dollar at the market open after earnings were published, and I exited at 25% of maximum potential profit.
Shares declined by1.0% from entry to exit, or a -350% annual rate. The options positions produced a 33.3% yield on debit for a +12,167% annual rate.
GLW publishes earnings on Wednesday before the opening bell.
I shall use options that trade for the last time 10 days later, on Aug. 4.
Implied volatility stands at 26%, which is 2.8 times the VIX, a measure of the volatility of the S&P 500 index.
GLW’s IV stands in the 57th percentile of its annual range and at the peak of its most recent broad movement.
DHI Analyses
D.R. Horton Inc. (DHI)
DHI publishes earnings onWednesday before the opening bell.
I shall use options that trade for the last time 10 days later, on Aug. 4.
Implied volatility stands at 27%, which is 2.9 times the VIX, a measure of the volatility of the S&P 500 index.
DHI’s IV stands in the 50th percentile of its annual range and the 81st percentile of its most recent broad movement.
AKAM Analysis
Akamai Technologies Inc. (AKAM)
AKAM publishes earnings on Tuesday after the closing bell.
I shall use options that trade for the last time 10 days later, on Aug. 4.
Implied volatility stands at 44%, which is 4.8 times the VIX, a measure of the volatility of the S&P 500 index.
AKAM’s IV stands in the 80th percentile of its annual range and the 82nd percentile of its most recent broad movement.
HES Analysis
Hess Corp. (HES)
Update 7/28/2017: HES executed a series of wide swings of the $2 magnitude after earnings were published, declining, zig-zagging lower, and then recovering all it had lost and then some. I exited at 14% of maximum potential profit
Shares showed a net decline of 2.2% over my three-day holding period, or a -266% annual rate. The options position produced a 16.0% yield on debit for a +1,946.67% annual rate.
HES publishes earnings on Wednesday before the opening bell.
I shall use options that trade for the last time 10 days later, on Aug. 4.
Implied volatility stands at 36%, which is 3.9 times the VIX, a measure of the volatility of the S&P 500 index.
HES’s IV stands in the 44th percentile of its annual range and the 66th percentile of its most recent broad movement.
Live: Tuesday, July 25, 2017
MCD Analysis
McDonald’s Corp. (MCD)
Update 7/28/2017: MCD rose by $7 after earnings wee published and then zig-zagged its way downward over three days, losing about half of its gains. I exited at 21% of maximum potential profit, below my 25% profit.
Shares showed a net rise of 1.8% over four days, or a +163% annual rate. The options position produced a +27.0% yield on debit for a +2,462% annual rate.
MCD publishes earnings on Tuesday before the opening bell.
I shall use options that trade for the last time 11 days later, on Aug. 4.
Implied volatility stands at 20%, which is double the VIX, a measure of the volatility of the S&P 500 index.
MCD’s IV stands in the 0th percentile of its annual range and the 98th percentile of its most recent broad movement.
CAT Analysis
Caterpillar Inc. (CAT)
Update 7/27/2017: CAT shares gapped upward after after earnings were published and then fell into an unprofitable sideways trend. I exited after three days for a loss in order to clear room within my options margin for other opportunities.
Shares rose by 5.7% over the the three days, or a +687% annual rate. The options position produced a 28.5% loss on debit for a -3,470% annual rate.
CAT publishes earnings on Tuesday before the opening bell.
I shall use options that trade for the last time 11 days later, on Aug. 4.
Implied volatility stands at 26%, which is 2.7 times the VIX, a measure of the volatility of the S&P 500 index.
CAT’s IV stands in the 57th percentile of its annual range and the 82nd percentile of its most recent broad movement.
Tim Bovee, Private Trader 
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