FedEx Corp. (FDX)

Update 6/21/2017: FDX declined  slightly after earnings were published. A sharp drop in implied volatility pushed profit to the 33% of maximum potential profit, allowing me a quick exit. 

shares declined by 1.2% in a day, or a -430% annual rate. The options position produced a +49.0% yield on debit for a +17,879% annual rate.

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FDX publishes earnings on Tuesday after the market close.

I shall use options that trade for the last time 10 days hence, on June 30.

Implied volatility stands at 27%, which is 2.6 times the VIX, a measure of the volatility of the S&P 500 index.

FDX’s IV stands in the 67th percentile of its annual range and the 99th percentile of its most recent broad movement.

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Red Hat Inc. (RHT)

Update 6/26/2017: Shares gapped sharply upward after earnings were published and remained in that high range thereafter. I exited for a profit as expiration approached

Shares rose by 8.4% over six days, or a +511% annual rate. The options position produced a -2.4% los son debit for a -1,729% annual rate.

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RHT publishes earnings on Tuesday after the market close.

I shall use options that trade for the last time 10 days hence, on June 30.

Implied volatility stands at 35%, which is 3.3 times the VIX, a measure of the volatility of the S&P 500 index.

RHT’s IV stands in the 75th percentile of its annual range and the 76th percentile of its most recent broad movement.

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Adobe Systems Inc. (ADBE)

Update 6/21/2017: ADBE gapped to the upside after earnings were published and then retraced much of the rise. I exited at 32% of maximum potential profit.

Shares showed a net rise of 1.6% over the day i held the position, or a +600% annual rate. The options position produced a 49.0% yield on debit for a +17,879% annual rate.

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ADBE publishes earnings on Tuesday after the market close.

I shall use options that trade for the last time 10 days hence, on June 30.

Implied volatility stands at 29%, which is 2.8 times the VIX, a measure of the volatility of the S&P 500 index.

ADBE’s IV stands in the 71st percentile of its annual range and the 80th percentile of its most recent broad movement.

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Microsoft Corp. (MSFT)

Update, June 26, 2017: MSFT traded largely within a range after I entered the position, opening higher today but quickly dropping back within the range. I exited at 6.6% of maximum potential profit.

Shares rose by 0.9% over six days, or a +55% annual rate. The options position produced a +7.0% yield on debit for a +428% annual rate.

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MSFT has sufficiently high implied volatility to qualify for analysis and possibly a trade.

I shall use options that trade for the last time 10 days hence, on June 30.

Implied volatility stands at 23%, which is 2.2 times the VIX, a measure of the volatility of the S&P 500 index.

MSFT’s IV stands in the 68th percentile of its annual range and the 91st percentile of its most recent broad movement.

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NVIDIA Corp. (NVDA)

Update 6/23/2017: NVDA traded within a range of less than $5, allowing time decay and declining implied volatility to bring the position to profitability. I exited at 21.3% of maximum potential profit.

Shares declined by 1.4% over three days, or a -169% annual rate. The options position produced a 27.0% yield on debit for a +3,289% annual rate.

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NVDA has sufficiently high implied volatility to qualify for analysis and possibly a trade.

I shall use options that trade for the last time 10 days hence, on June 30.

Implied volatility stands at 41%, which is 3.9 times the VIX, a measure of the volatility of the S&P 500 index.

NVDA’s IV stands in the 47th percentile of its annual range and the 67th percentile of its most recent broad movement.

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Netflix Inc. (NFLX)

Update 6/26/2017: NFLX rose steadily after my entry into the position. I exited for a loss as expiration approached.

Shares rose by 3.6% over six days, or an annual rate of 217%. The options position produced an 18.4% loss on debit for a -1,120% annual rate.

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NFLX has sufficiently high implied volatility to qualify for analysis and possibly a trade.

I shall use options that trade for the last time 10 days hence, on June 30.

Implied volatility stands at 47%, which is 4.4 times the VIX, a measure of the volatility of the S&P 500 index.

NFLX’s IV stands at the 58th percentileof its annual range and the peak of its most recent broad movement.

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6/20 – 3:35 p.m. New York time

I entered seven new positions today. Four were earnings plays: ADBE, FDX, RHT and WGO. Three were direction neutral plays with high implied volatility: MSFT, NFLX and NVDA

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6/19 – 9:10 p.m. New York time

I have updated the KR analysis with results.

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Two housing reports lead the week: Existing home sales on Wednesday and new home sales on Friday, each at 10 a.m. New York time

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6/16 – 3:15 p.m. New York time

Outcomes:

I exited FB and KRE for a profit and NFLX for a loss, and rolled AAPL and QQQ forward to a later expiration. This completes my exit from positions that expire next Friday, June 23.

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