Microsoft Corp. (MSFT)
Update 2/3/2017: MSFT hit my price target of25% of the maximum potential profit, and I exited.
Shares declined by 1.2% over eight days, for a -56% annual rate. The options position produced a 33.5% yield on debit for a +1,526% annual rate.
MSFT publishes earnings on Thursday after the closing bell.
Intel Corp. (INTC)
Update 2/15/2017: INTC declined after earnings were published and then began to rise again, albeit slowly, but sufficiently to move the price back into the zone of profitability. I exited at 24.7% of maximum potential profit.
For the lifespan of the position, shares declined by 4.4% over 20 days, or a -80% annual rate. The options position produced a 32.9% yield on debit for a +999% annual rate
INTC publishes earnings on Thursday after the closing bell.
I am adding MSFT to my prospective trades for today. See Thursday’s Agenda for other prospects.
By Tim Bovee, Portland, Oregon, Jan. 26, 2017
I shall analyze GOOGL and INTC as potential earnings plays.
A curious day for prospects. I have six symbols as potential earnings plays that meet my criteria for liquidity. Yet only one, GOOGL, has sufficiently high implied volatility to meet my standards.
I entered positions on BMY, QCOM and T, each coinciding with an earnings announcement.
I exited a position on GS for a profit.
I am breaking off early today for errands. I have an order in for an exit on C, but it has yet to be filled. If it is filled before the closing bell, I shall post an update.
By Tim Bovee, Portland, Oregon, Jan. 25, 2017
AT&T Inc (T)
Update Feb. 13, 2017; As T neared its target price, I exited for a profit. My goal was 25% of maximum potential profit; an order entry error on my part got me out at a slightly different price, 22.5% of maximum, potentially costing me 4 cents per share in profit, or $4 per contract. A careless error, but a small cost for the lesson learned.
T zig-zagged after earnings were published, rising then falling then beginning to rise again when it interrupted the trend by gapping downward today, allowing for the exit.
Shares declined by 1.4% over 19 days, or a -27% annual rate. The options position produced a 29.0% yield on debit for a +558% annual rate.
T publishes earnings on Wednesday after the closing bell.
QUALCOMM Inc. (QCOM)
Update 2/10/2017: Having gapped down sharply a few days before publication of earnings, and before I entered my position, QCOM continued to decline, more slowly, after publication but remained above the break-even point. I exited at 25.2% of maximum potential profit.
Shares declined by 4.9% ver 16 days, or a -109% annual rate. The options position produced a 33.7% yield on debit for a +768% annual rate
QCOM publishes earnings on Wednesday after the closing bell.
Bristol-Myers Squibb Co. (BMY)
Update 2/27/2017: BMY rose continually after earnings were published, moving beyond the breakeven point.
Shares rose by 18.2% over 33 days, or a +201% annual rate. Tye optons position produced a 43.8% loss on debit for a -484% annual rate.
BMY publishes earnings on Thursday before the opening bell.
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