I shall analyze two symbols as potential earnings plays: KO and SU.

I have exited AAPL for a loss in order to avoid the likelihood of assignment when the stock goes ex-dividend on Thursday. I shall update the analysis with results later today.

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I shall analyze KO and SU on Wednesday as potential earnings plays. SU’s options grid’s coverage is a bit weak, but I shall try to make it work.

I shall exit AAPL the day before the stock goes ex-dividend. I am also trying to pick the right time to exit UNP and USB as they approach their last day of trading on Feb. 17 prior to expiration.

By Tim Bovee, Portland, Oregon, Feb. 7, 2017

 

I exited two positions: FB for a profit as it hit my price target and IBM for a loss to avoid possible assignment as the stock goes ex-dividend.

I entered no new positions.

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Implied volatility on GILD has fallen in early trading and it no longer qualifies for an analysis.

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I shall analyze GILD on Tuesday as a potential earnings play.

MDLZ qualifies on liquidity and options-grid coverage but falls short on implied volatility which stands in the lower half of both the annual range and the most recent broad move. I shall check it again after the opening bell, but unless IV improves, I shall do no further analysis of MDLZ.

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

 

I entered positions on GM and BP timed to coincide with earnings announcements.

I exited a position on XOM the day before the stock went ex-dividend in order to ensure my position wasn’t assigned.

I am attempting to exit FB, LMT and QCOM at my target prices and shall update this post after the market close if my orders are filled.

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

BP p.l.c. (BP)

Update 2/27/2017: BP fell for a week after earnings were published, and then zig-zagged sideways. The declined in volatility and time decay did their work, and I was able to exit for a profit at 25.2% of maximum potential profit, slightly above my 25% target..

Shares fell by 4.8% over 21 days, or an 84% annual rate. The options position produced a 33.6% yield on debit for a +584% annual rate.

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BP publishes earnings on Tuesday before the opening bell.

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General Motors Co. (GM)

Update 3/6/2017: GM gapped higher after earnings were published, entering unprofitable territory, and remained thee until today, when a sharp morning drop combined with time decay as expiration approached allowed me to exit for a below-target profit, at 11.6% of maximum potential yield. My target was 25%.

Shares rose by 3.6% over28 days, or a +43% annual rate. The options position produced a +13.13% yield on debit for a +399% annual rate

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GM publishes earnings on Tuesday before the opening bell.

I shall use the MAR series of options, which trades for the last time 39 days hence, on March 17.

Implied volatility stands at 29%, which is 2.6 times the VIX, a measure of the volatility of the S&P 500 index.

GM’s IV stands in the 29th percentile of its annual range and the 67th percentile of its most recent broad movement.

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I shall analyze GM and BP as potential earnings plays today. BP’s options grid is not quite what I would like in terms of open interest at one key strike price, but I shall see if I can make it work.

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Statistics on international trade, a political hot potato in the emerging administration of President Trump, will be published on Tuesday at 8:30 a.m. New York time.

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