I have two prospective earnings plays for Thursday: V and AMZN.
I shall do a full analysis of V and most likely enter a position.
I am rejecting AMZN without full analysis; the stock is priced north of $800 per share, and that would force me to commit a greater portion of my funds to a single trade than I prefer. Better a smaller commitment to increase diversification.
Hey, Jeff Bezos! Time for a stock split?
By Tim Bovee, Portland, Oregon, Feb. 1, 2017
Facebook Inc. (FB)
Update 2/7/2017: FB reached its target price and I exited for a profit.
Shares declined b7 0.6% over six das, or a -36% annual rate. The options position produced a 33.3% yield on debit for a +2,028% annual rate.
FB publishes earnings on Wednesday after the closing bell.
I shall analyze FB today as a potential earnings play.
By Tim Bovee, Portland, Oregon, Feb. 1, 2017
I have three prospective trades for Wednesday that qualify on grounds of liquidity: FB, MRK and PM. All are potential earnings plays.
I intend to analyze FB.
MRK and PM have overly low implied volatility, both in comparison with the annual range and the most recent broad movement. I shall check them again after the opening bell, but without a significant rise in implied volatility, neither will qualify for a further look.
By Tim Bovee, Portland, Oregon, Jan. 31, 2017
Altria Group Inc. (MO)
Update 3/3/2017: MO rose continually after earnings were published, quickly moving above the zone of profitability. As options expiration and an ex-dividend date both approached, I exited for a loss.
Shares rose by 5.9% over 30 days, or a 71% annual rate. The options position produced a 34.0% loss on debit for a -414% annual rate.
MO publishes earnings on Wednesday before the opening bell.
Apple Inc. (AAPL)
Update Feb. 8, 2017: AAPL gapped upward after earnings were published, putting it beyond the profit zone of my position. It continued to rise, more moderately, thereafter. I exited the position to avoid the likelihood of assignment when shares went ex-dividend on Feb. 9.
Shares rose by 8.9% over eight days, or a +408% annual rate. The options position produced a 35.5% loss on debit for a -1,620% annual rate.
AAPL publishes earnings on Tuesday after the closing bell.
I shall dive into AAPL and MO as potential earnings plays.
By Tim Bovee, Portland, Oregon, Jan. 31, 2017
I shall be looking at AAPL and MO as potential earnings plays on Tuesday.
By Tim Bovee, Portland, Oregon, Jan. 30, 2017
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