I entered an earnings play on WFC and exited no positions.

By Tim Bovee, Portland, Oregon, Jan. 6, 2017

 

Wells Fargo & Co. (WFC)

Update 1/31/2017: WFC remained steady after earnings were published, and then rose a little. Implied volatility fell, and then retraced a portion of the decline. I exited for less than my profit target in order to avoid early assignment when the stock goes ex-dividend on Feb. 1.

Shares rose by 1.43% over 25 days, or a +21% annual rate. The options position produced a +21.9% yield on debit for a +319% annual rate.

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I shall use the FEB series of options, which trades for the last time 42 days hence, on Feb. 17.

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WFC publishes earnings on Monday before the opening bell. I shall do an analysis and perhaps a trade within the next hour.

By Tim Bovee, Portland, Oregon, Jan. 6, 2017

No prospective new positions for Friday — no earnings announcements liquid enough to meet my standards and most high-volatility plays are disallowed because they will be publishing earnings soon. I prefer to wait for the last trading day before an announcement to place my trade.

Earnings season begins Monday with AA’ announcement.

Meanwhile, on Friday I shall continue to focus on winding up my positions that expire Jan. 20.

By Tim Bovee, Portland, Oregon, Jan. 5, 2017

I exited one position, XLF, for a profit, and two for losses, SPX and COST.

I entered no new positions.

By Tim Bovee, Portland, Oregon, Jan. 5, 2017

 

No new positions in sight for Thursday. I’ll concentrate on evaluating existing positions to see which I should exit as their Jan. 20 expiration approaches.

The next earnings season begins Monday, Jan. 9, with the publication of AA’s results.

By Tim Bovee, Portland, Oregon, Jan. 4, 2017

 

I entered an earnings play on WBA.

I exited FXI and GLD, each for a profit.

The short puts in my FNSR position were assigned, and I exited the resulting shares and the long puts, leaving a bear call spread.

By Tim Bovee, Portland, Oregon, Jan. 4, 2017

 

Walgreens Boots Alliance Inc. (WBA)

Update 1/20/2017: WBA moved sideways after earnings were published and fell today after announcing that it would pay $50 million to resolve a prescription kickback case. (Reuters story) I exited at 25% of maximum potential profit.

Shares rose by 1.4% over 16 days, or a +31% annual rate. The options position produced a 33.3% yield on debit for a +760% annual rate.

WBA publishes earnings on Thursday before the opening bell.

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I shall be analyzing WBA as a potential earnings play.

I also intend to begin closing out my options positions expiring Jan. 20. The symbols from which I’ll be making exit decisions are CSX, PAY, SPX, FNSR, FXI, GS, IBM, MU, XLF and XLU.

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I shall consider WBA as an earnings play on Wednesday. Implied volatility for both the year and the most recent broad move is sufficiently high to support a trade.

By Tim Bovee, Portland, Oregon, Jan. 4, 2017