GM Analysis

Tim Bovee7 Comments

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

 

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.

Read More »

Friday’s Agenda

Tim Bovee

I have no plans to enter any  new positions today.

I have exited MSFT for a profit and shall update the analysis with results later today.

By Tim Bovee, Portland, Oregon, Feb. 3, 2017

 

Thursday Outcomes

Tim Bovee

I have entered a position on V timed to coincide with an earnings announcement.

I have placed an order to exit MSFT at my target price and shall update the Outcomes if it is filled.

By Tim Bovee, Portland, Oregon, Feb. 2, 2017

 

V Analysis

Tim Bovee3 Comments

Visa Inc. (V)

Update 2/27/2017: V stair-stepped higher after earnings were published, alternating rises with retracements in a classic movement in the direction of the primary trend.

Shares rose by 7.75 over 25 days, or a +113% annual rate. The options position produced a 40.5% loss on debit for a -592% annual rate.

 

V publishes earnings on Thursday after the closing bell.

Read More »