I shall be looking at four potential earnings plays on Tuesday: ABT, NVS, TXN and UTX.

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I entered a position on LMT coinciding with publication of earnings.

I passed on trading VZ because implied volatility was low than I like in relation to both the annual range and the most recent broad movement.

By Tim Bovee, Portland, Oregon, Jan. 23, 2017

 

Verizon Communications (VZ) 

VZ publishes earnings on Tuesday before the opening bell.

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Lockheed Martin Corp. (LMT)

Update 2/24/2017: LMT rose almost continually in the weeks after earnings were published. I exited at 12.5% of maximum potential profit — about half of my target for trades structured the way LMT is — in order to avoid an ex-dividend date.

Shares rose by 3.4% over 32 days, or a +39% annual rate. The options position produced a 14.3% yield on debit for a +163% annual rate

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LMT publishes earnings on Tuesday before the opening bell.

I shall use the MAR series of options, which trades for the last time 53 days hence, on March 17.

Implied volatility stands at 22%, which is 1.8 times the VIX, a measure of the volatility of the S&P 500 index.

LMT’s IV stands in the 52nd percentile of its annual range and the 77th percentile of its most recent broad movement.

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Traders get a first look at gross domestic product for the 4th quarter of 2016, as well as annual statistics. The report will be published Friday at 8:30 a.m. New York time.

Other reports of significance: Durable goods orders, also on Friday at 8:30 p.m., international trade in goods on Thursday at 830 a.m., the Purchasing Managers Institute manufacturing index flash release on Tuesday at 9:45 a.m., and two real-estate reports, existing home sales on Tuesday and new home sales on Thursday, each at 10 a.m.

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My FNSR position expired on Saturday for a small loss weeks after exercise of an option prompted adjustments during the holding period.

By Tim Bovee, Portland, Oregon, Jan. 21, 2017

 

I have four potential earnings plays on my desk for Monday: BABA, DD, LMT and VZ. However, my short list is LMT and VZ. That requires some explanation.

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I entered a position on MCD timed to coincide with an earnings announcements, and exited positions on AXP, BAC and WBA after they hit my profit points.

By Tim Bovee, Portland, Oregon, Jan. 20, 2017

 

McDonald’s Corp. (MCD)

Upate 2/24/2017:  MCD rose almost continually after earnings were published. I exited for a loss to avoid potential assignment on ex-dividend day.

Shares rose by 4.7% over 35 days, or a 49% annual rate. The options positon produced a 24.32% loss on debit for a =254% annual rate.

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MCD publishes earnings on Monday before the opening bell

I shall use the MAR series of options, which trades for the last time 56 days hence, on March 17.

Implied volatility stands at 19%, which is 1.6 times the VIX, a measure of the volatility of the S&P 500 index.

MCD’s IV stands in the 33rd percentile of its annual range and the 69th percentile of its most recent broad movement.

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I shall analyze MCD for an earnings play.

I’ve exited WBA for a profit and shall post results later today.

I am attempting an exit of AXP but have yet to be filled.

By Tim Bovee, Portland, Oregon, Jan. 20, 2017