Starbucks Corp. (SBUX)

Update 8/4/2017: As anticipated, the remaining leg of the SBUX iron fly expired worthless, ending the position. SBUX gapped down by more than $4 immediately after earnings were published. Although the price drifted a bit higher over the ensuing four trading days, the position never returned to profitability. 

As noted below, the short puts were assigned on July 31, after the second post-earnings trading session, sealing the loss. The reaming days of the position were spend waiting for the final leg to expire worthless.

Shares showed a net declined of 4.5% over my eight-day holding period, or a -212% annual rate. The options position produced a -10.5% loss on debit for a -477% annual rate.

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Update 7/31/2017: The short put leg of  my iron fly on SBUX was exercised at Friday’s close. I have exited the shares from the assignment, as well as the short call and long put legs. The remaining leg, the long call, has no market and I expect it to expire worthless at Friday’s close. I shall defer calculating results until that final leg has been resolved.

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SBUX publishes earnings on Thursday after the closing bell.

I shall use options that trade for the last time eight days hence, on Aug. 4.

Implied volatility stands at 24%, which is  2.6 times the VIX, a measure of the volatility of the S&P 500 index.

SBUX’s IV stands in the 59th percentile of its annual range and the 90th percentile of its most recent broad movement.

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7/27 – 1:50 p.m.  New York time

I have updated the analyses for CAT and PG with results.

7/27 – 10:10 a.m. New York time

With INTC and SBUX I have completed all the entries available to me today within the limits of my options margin. I shall update the analyses for the exits, CAT and PG, after the closing bell.

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xFacebook Inc. (FB)

Update 7/31/2017: FB gapped to the upside by $10 after earnings were published and then traded sideways for the ensuing two market days. I exited for a loss as earnings approached.

Shares rose by 4.4% over five days, or a +317% annual rate. The options position produced a -2.9% loss on debit for a -209% annual rate.

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FB publishes earnings on Wednesday after the closing bell.

I shall use options that trade for the last time nine days hence, on Aug. 4.

Implied volatility stands at 30%, which is 3.2 times the VIX, a measure of the volatility of the S&P 500 index.

FB’s IV stands in the 81st percentile of its annual range and the 94th percentile of its most recent broad movement.

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Twitter Inc. (TWTR)

Update 7/31/2017: TWTR gapped $2 to the downside after earnings were published and over the ensuing two trading as lost an additional 50 cents. I exited for a loss as earnings approached.

Shares declined by 16.6% over five days, or a -1,210% annual rate. The options position produced a -42.3% loss on debit for a -3,086% annual rate.

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TWTR publishes earnings on Thursday before the opening bell.

I shall use options that trade for the last time nine days later, on Aug. 4.

Implied volatility stands at 57%, which is 6.1 times the VIX, a measure of the volatility of the S&P 500 index.

TWTR’s IV stands in the 50th percentile of its annual range and at the peak of its most recent broad movement.

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The Procter & Gamble Co. (PG)

Update 7/27/2017: PG declined after earnings were published and then reversed course to the upside, allowing me to exit with little difference in the stock price compared to entry but with 22.5% of maximum potential profit.

Shares rose by 0.3% over the 24 hours I held the position, a 94% annual rate. The options position produced a 29.0% yield on debit for a +10,572% annual rate.

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PG publishes earnings on Thursday before the opening bell.

I shall use options that trade for the last time nine days hence, on Aug. 4.

Implied volatility stands at 18%, which is 1.9 times the VIX, a measure of the volatility of the S&P 500 index.

PG’s IV stands in the 49th percentile of its annual range and at the peak of its most recent broad movement.

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7/26 – 6:20 p.m. New York time

I have updated the analyses of my exits, GLW and KO, with results.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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