7/23 – 12:15 a.m. New York time
I shall be look at four earnings plays on Monday: STX, APC, CAT and MCD.
By Tim Bovee, Fukuoka, Japan, July 23-24, 2017
Author: Tim Bovee
The Week Ahead: Money rates, GDP and much more
The Federal Open Market Committee meets for two days, culminating in an announcement on interest rates on Wednesday at 2 p.m. New York time.
Their decision precedes public release of the first estimate of gross domestic product for the 2nd quarter, on Friday at 8:30 a.m.
Other major economic reports: Durable goods orders and international trade in goods, both on Thursday at 8:30 a.m., and two real estate reports: existing home sales on Monday and new home sales on Wednesday, each at 10 a.m.
HAL Analysis
Halliburton Co. (HAL)
HAL publishes earnings on Monday after the closing bell.
I shall use options that trade for the last time 14 days later, on Aug. 4.
Implied volatility stands at 30%, which is 1.89 times the VIX, a measure of the volatility of the S&P 500 index.
HAL’s IV stands in the 46th percentile of its annual range and the 63rd percentile of its most recent broad movement.
Live: Friday, July 21, 2017
Live: Thursday, July 20, 2017
Live: Wednesday, July 19, 2017
Live: Tuesday, July 18, 2017
MSFT Analysis
Microsoft Corp. (MSFT)
Update 7/21/2017: MSFT shares rose and then declined after earnings were published, and I exited a 58.9% of maximum potential profit.
Shares rose by a net 1.6% over the four days I held the position, or a +144% annual rate. The options position produced a +58.9% yield on debit for a +5,371% annual rate.
MSFT publishes earnings on Thursday after the closing bell.
I shall use options that trade for the last time eight days later, on July 28.
Implied volatility stands at 24%, which is 2.5 times the VIX, a measure of the volatility of the S&P 500 index.
MSFT’s IV stands in the 74th percentile of its annual range and the 89th percentile of its most recent broad movement.
QCOM Analysis
QUALCOMM Inc. (QCOM)
QCOM publishes earnings on Wednesday after the closing bell.
I shall use options that trade for the last time nine days later, on July 28.
Implied volatility stands at 29%, which is 2.9 times the VIX, a measure of the volatility of the S&P 500 index.
QCOM’s IV stands in the 63rd percentile of its annual range and the 77th percentile of its most recent broad movement.
URI Analysis
United Rentals Inc. (URI)
Update 7/20/2017: URI gapped upward after earnings were published. I exited at 25.0% of maximum potential profit.
Shares rose by 4.2% over three days, or a +507.1% annual rate. The options position produced a 33.3% yield on debit for a +4,049% annual rate.
URI publishes earnings on Wednesday after the closing bell.
I shall use options that trade for the last time nine days later, on July 28.
Implied volatility stands at 44%, which is 4.5 times the VIX, a measure of the volatility of the S&P 500 index.
URI’s IV stands in the 65th percentile of its annual range and the peak of its most recent broad movement.
