SINA Corp. (SINA)

Update 5/17/2017: SINA gapped sharply to the upside immediately after earnings were published, retracing a portion of the rise the day after, allowing for a slightly improved, although still losing, exit at a $10.20 debit.

Shares showed a net rise of 7.6% over two days, or a +1,395% annual rate. The options position produced a -37.9% loss on debit for a -6,924% annual rate.

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SINA publishes earnings on Tuesday before the opening bell.

I shall use the series of monthly options that trade for the last time 32 days hence, on June 16.

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

SINA’s IV stands in the 57th percentile of its annual range and at the peak of its most recent broad movement.

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The Home Depot Inc. (HD)

Update 5/16/2017: HD gapped to the upside after earnings were published, and I exited for $3.67, or 25% of maximum potential profit.

Shares rose by 1.4% from my entry a day earlier, or a +517% annual rate. The options position produced a 33.2% yield on debit for a +12,134% annual rate.

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HD publishes earnings on Tuesday before the opening bell.

I shall use the series of weekly options that trade for the last time 11 days hence, on May 26.

Implied volatility stands at 22%, which is 2.1 times the VIX, a measure of the volatility of the S&P 500 index.

HD’s IV stands in the 60th percentile of its annual range and the 90th percentile of its most recent broad movement.

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5/15 – 3 p.m. New York time

I entered four new positIons: TJX, HD, SINA and XOP. I analyzed OAS but rejected the trade, and declined to analyze XRT as its implied volatility fell below my 50th percentile cut-off point in relation to its most recent broad movement.

I exited six positions: BAC, IBM, JWN, M, NVDA and SNAP. I also partially exited LB.

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The week’s two major reports will be published on Tuesday: Housing starts at 8:30 a.m. New York time and industrial production statistics at 9:15 a.m.

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5/12 – 3:20 p.m. New York time

I entered no new positions today.

I exited positions in OAS and XRT, each for a profit.

Look for The Week Ahead to be posted on Saturday and Monday’s Live, with prospective trades, to be posted on Sunday.

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5/11 – 3:00 p.m. New York time

I have exited DIS in addition to the already noted exits of TEVA and KSS. I entered no new positions.

The order attempting to exit OAS remains active. I shall update after the closing bell if it is filled.

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Teva Pharmaceutical Industries Ltd. (TEVA)

Update 5/11/2017: TEVA zig-zagged sharply in response to its earnings announcement. I exited at  a $1.25 debit, or 29.4% of maximum potential profit.

Shares were down 1.7% over a day, or a -627% annual rate. The options position produced a 41.6% yield on debit for a +15,184% annual rate.

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TEVA publishes earnings on Thursday before the opening bell.

I shall use the series of weekly options that trade for the last time eight days hence, on May 19.

Implied volatility stands at 39%, which is 3.9 times the VIX, a measure of the volatility of the S&P 500 index.

TEVA’s IV stands in the 54th percentile of its annual range and the peak of its most recent broad movement.

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Snap Inc. (SNAP)

Update 5/15/2017: SNAP gapped sharply to the downside after earnings were published and then rose for three subsequent trading days, partially mitigating the loss. I exited for a loss for a $3.75 debit.

Shares declined by 13.7% over five days, or a -1,003% annual rate. The options position produced a -15.7% loss on debiy for a -1,149% annual rate.

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SNAP publishes earnings on Thursday after the closing bell.

I shall use the series of weekly options that trade for the last time eight days hence, on May 19.

Implied volatility stands at 74%, which is 7.4 times the VIX, a measure of the volatility of the S&P 500 index.

SNAP’s IV stands at its peak since the stock began trading publicly on March 2.

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Macy’s (M)

Update 5/15/2017: M gapped sharply to the downside the immediately after earnings were published and continued to decline in the ensuing two trading days. I exited the position for a debit of $3.65.

Shares declined by 19.9% over five days, or a -1,437% annual rate. The options position produced a -42.5% loss on debit for a -3,100% annual rate.

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M publishes earnings on Thursday before the opening bell.

I shall use the series of weekly options that trade for the last time nine days hence, on May 19.

Implied volatility stands at 47%, which is 4.7 times the VIX, a measure of the volatility of the S&P 500 index.

M’s IV stands in the 88th percentile of its annual range and at the peak of its most recent broad movement.

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Kohl’s Corp. (KSS)

Update 5/11/2017: KSS zig-zagged sharply after earnings were published, ending up at my exit down 2.5%, or an annual rate of 925%. The options position produced a 45.7% yield on debit for a +16,686% annual rate.

The exit price was a $2.10 debit, or 31.4% of maximum potential profit.

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KSS publishes earnings on Thursday before the opening bell.

I shall use the series of weekly options that trade for the last time nine days hence, on May 19.

Implied volatility stands at 48%, which is 4.8 times the VIX, a measure of the volatility of the S&P 500 index.

KSS’s IV stands in the 78th percentile of its annual range and the 90th percentile of its most recent broad movement.

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