Walgreens Boots Alliance Inc. (WBA)

Update 1/20/2017: WBA moved sideways after earnings were published and fell today after announcing that it would pay $50 million to resolve a prescription kickback case. (Reuters story) I exited at 25% of maximum potential profit.

Shares rose by 1.4% over 16 days, or a +31% annual rate. The options position produced a 33.3% yield on debit for a +760% annual rate.

WBA publishes earnings on Thursday before the opening bell.

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I shall be analyzing WBA as a potential earnings play.

I also intend to begin closing out my options positions expiring Jan. 20. The symbols from which I’ll be making exit decisions are CSX, PAY, SPX, FNSR, FXI, GS, IBM, MU, XLF and XLU.

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I shall consider WBA as an earnings play on Wednesday. Implied volatility for both the year and the most recent broad move is sufficiently high to support a trade.

By Tim Bovee, Portland, Oregon, Jan. 4, 2017

Late in the trading day I exited FXE for a profit.

As reported in the earlier Outcomes post, I entered a position on COST today.

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

I entered a volatility play on COST.

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

 

Costco Wholesale Corp. (COST)

Update 1/5/2017: COST rose sharply after earnings were published, retraced a bit, and then resumed its rise. I got out quickly for a loss, figuring there was no way this position would improve.

In part, my willingness to exit so rapidly was to free funds for earnings season, which begins next week.

Shares rose by 2.7% over two days, or a +494% annual rate. The options position produced a 17.1% loss on debit for a -3,129% annual rate

COST is showing implied volatility sufficiently high to support a trade.

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COST continues to qualify as a potential high-volatility play, and I shall do an analysis today.

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

U.S. markets will be closed on Monday in observance of the New Year’s holiday, giving traders a short week culminating in a big report.

The employment situation report will be published Friday at 8:30 a.m. New York time. A private-sector sneak preview, the ADP employment report, will be released on Wednesday at 8:15 a.m.

The Institute of Supply Managers manufacturing survey will be published on Tuesday at 10 a.m., and international trade on Friday at 8:30 a.m.

The Federal Open Market Committee minutes of the Dec. 14 meeting, at which the Fed funds rate was raised by a 25 basis points.

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U.S. markets will be closed Monday, Jan. 2, in observance of the New Year’s holiday.

I have one prospect for Tuesday, COST, which has sufficiently high implied volatility to warrant a closer look.

Earnings season begins Jan. 9 with the publication of AA’s results and will continue for six weeks.

By Tim Bovee, Portland, Oregon, Dec. 31, 2016

I exited AMAT for a profit.

By Tim Bovee, Portland, Oregon, Dec. 30, 2016