Tuesday’s Outcomes

January 17, 2017 Tim Bovee

I entered three positions coinciding with earnings announcements: C, GS and USB.

I exited no positions.

By Tim Bovee, Portland, Oregon, Jan. 17, 2017

USB Analysis

January 17, 2017February 8, 2017 Tim Bovee4 Comments

U.S. Bancorp (USB)

Update 2/8/2017: USB rose after earnings were published and remained above the limit of the profit zone thereafter. I exited nine days before the position’s options traded for the last time.

Shares rose by 5.0% over 22 days, or an 82% annual rate. The options position produced a 35.5% loss on debit for a -1,620% annual rate.

USB publishes earnings on Wednesday before the opening bell.

GS Analysis

January 17, 2017January 25, 2017 Tim Bovee3 Comments

The Goldman Sachs Group Inc. (GS)

Update 1/25/2017: GS began declining before earnings were announced and continued for a few days thereafter. It then retraced a portion of the decline in what has largely been a sideways move. It hit my exit point — 25% of maximum potential profit — and I exited.

Shares declined by 1.6% over eight days, or a -73% annual rate. The options position produced a 33.3% yield on debit for a +1,518% annual rate

GS publishes earnings on Wednesday before the opening bell.

C Analysis

January 17, 2017January 26, 2017 Tim Bovee4 Comments

Citigroup Inc. (C)

Update 1/26/2017: C’s stock price and implied volatility were declining before earnings were published and continued to decline for a few days thereafter, then bounced, retracing a portion of the fall.

I exited near my target price, at 25.4% of the maximum potential profit.

Shares declined by 2.1% over eight days, or a -97% annual rate. The options position produced a 34.1% yield on debit for a +1,556% annual rate.

C publishes earnings on Wednesday before the opening bell.

Tuesday’s Agenda

January 17, 2017 Tim Bovee

I shall be looking at three earnings plays today, all of them banking companies: C, GS and USB.

As is common within the sector the three showed exceptionally high volatility a year ago and have since settled into range. These three qualify for further consideration because each is in the top half of the range.

By Tim Bovee, Portland, Oregon, Jan. 17, 2017

The Week Ahead: Prices, industry, Yellen

January 16, 2017January 16, 2017 Tim Bovee

(The Week Ahead is being posted late, on Monday, due to illness. There were no reports scheduled for Monday, when U.S. markets were closed for the Martin Luther King holiday.

Two major reports will be published on Wednesday, the consumer price index at 8:30 a.m. New York time and industrial production at 9:15 a.m.

On Thursday look for housing starts at 8:30 a.m.

Fed Chair Janet Yellen gives a speech to the Commonwealth Club of San Francisco on Wednesday at 8 p.m. New York time. Her topic: The Goals of Monetary Policy and How We Pursue Them.

Yellen addresses the Stanford Institute for Economic Policy Research, also in San Francisco, on Thursday at 8 p.m. Her topic: The Economic Outlook and Conduct of Monetary Policy.