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
I entered positions on PFE and XOM timed to coincide with earnings announcements. XOM was not initially on my agenda today because of low implied volatility relative to IV range, but it has been a day of rising volatility in the markets, and XOM move up to meet my standards.
By Tim Bovee, Portland, Oregon, Jan. 30, 2017
Exxon Mobil Corp. (XOM)
Update 2/6/2017: XOM’s price fell after earnings missed the Street estimate by a wide margin. The stock goes ex-dividend on Feb. 7, and I exited at 21.4% of the maximum potential gain to avoid the risk of early assignment.
XOM shares declined by 1.7% over seven days, or a -87% annual rate. The options positions produced a 21.4% yield on debit for a +1,417% annual rate.
XOM publishes earnings on Tuesday before the opening bell.
Pfizer Inc. (PFE)
Update 1/31/2017: Prices rose then dropped back after earnings wee published. Implied volatility fell sharply. I chose to exit PFE because it goes ex-dividend on Feb. 1, and i’m wanting to avoid the likelihood of early assignment.
Shares rose by 0.8% over one day, or a +281% annual rate. The options position produced a 6.6% yield on debit for a +2,413% annual rate.
PFE publishes earnings on Tuesday before the opening bell.
I shall analyze PFE today as a potential earnings play.
By Tim Bovee, Portland, Oregon, Jan. 31, 2017
The Federal Open Market Committee holds its first money policy meeting of the Trump era, announcing its decisions on Wednesday at 2 p.m. New York time.
It is also a week for high-impact economic reporting.
The employment situation report covering the first month of 2017 will be published on Friday at 8:30 a.m.
The less comprehensive private-sector ADP employment report, treated by traders as an indicator of what the government report will show, will be published on Wednesday at 8:15 a.m.
Also out are are personal income and outlays on Monday at 8:30 a.m. and the Institute of Supply Management manufacturing survey on Wednesday at 10 a.m.
I have two potential trades for Monday.
No trades today.
By Tim Bovee, Portland, Oregon, Jan. 27, 2017
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