7/24 – 6:10 p.m. New York time
I have completed updating the analyses of positions I exited with results: CSX, GE, IBM, QCOM, HOG, NFLX and YUMC.
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)
Update 7/28/2017: HAL declined by $2 plus change after earnings were published and then swung into a sideways trend. As expiration approached, I exited at 5% of maximum potential profit.
Shares declined by 3.8% over seven days, or a -159% annual rate. The options position produced a +5.5% yield on debit for a +284% annual rate.
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)
Update 7/24/2017: QCOM gapped downward after earnings were published and continued to decline for the next two days, and I exited as expiration approached.
Shares declined by -5.0% over seven days, or a -258% annual rate. The options position produced a 14.3% loss on debit for a -747.6% annual rate.
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.
You must be logged in to post a comment.