All three of my prospects for today still qualify for further analysis. I shall be analyzing BMY, QCOM and T as possible trades.
I have exited my position in GS for a profit and shall update the analysis with results. I am attempting an exit of C, but the order hasn’t been filled.
By Tim Bovee, Portland, Oregon, Jan. 25, 2017
I shall be looking at three possible earnings plays on Wednesday: BMY, QCOM and T.
By Tim Bovee, Portland, Oregon, Jan. 24, 2017
I entered no new positions today and exit no existing ones.
By Tim Bovee, Portland, Oregon, Jan. 24, 2017
In last night’s Prospects I discussed reasons why all four potential trades had problems.
The four — ABT, NVS, TXN and UTX — now have open interest on their options grids, but its low still, perhaps reflecting the fact that the MAR-series options were listed only last night.
I shall be looking at four potential earnings plays on Tuesday: ABT, NVS, TXN and UTX.
Lockheed Martin Corp. (LMT)
Update 2/24/2017: LMT rose almost continually in the weeks after earnings were published. I exited at 12.5% of maximum potential profit — about half of my target for trades structured the way LMT is — in order to avoid an ex-dividend date.
Shares rose by 3.4% over 32 days, or a +39% annual rate. The options position produced a 14.3% yield on debit for a +163% annual rate
LMT publishes earnings on Tuesday before the opening bell.
I shall use the MAR series of options, which trades for the last time 53 days hence, on March 17.
Implied volatility stands at 22%, which is 1.8 times the VIX, a measure of the volatility of the S&P 500 index.
LMT’s IV stands in the 52nd percentile of its annual range and the 77th percentile of its most recent broad movement.
Traders get a first look at gross domestic product for the 4th quarter of 2016, as well as annual statistics. The report will be published Friday at 8:30 a.m. New York time.
Other reports of significance: Durable goods orders, also on Friday at 8:30 p.m., international trade in goods on Thursday at 830 a.m., the Purchasing Managers Institute manufacturing index flash release on Tuesday at 9:45 a.m., and two real-estate reports, existing home sales on Tuesday and new home sales on Thursday, each at 10 a.m.
My FNSR position expired on Saturday for a small loss weeks after exercise of an option prompted adjustments during the holding period.
By Tim Bovee, Portland, Oregon, Jan. 21, 2017
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