Citigroup Inc. (C)
Update 1/26/2017: C’s stock price and implied volatility were declining before earnings were published and continued to decline for a few days thereafter, then bounced, retracing a portion of the fall.
I exited near my target price, at 25.4% of the maximum potential profit.
Shares declined by 2.1% over eight days, or a -97% annual rate. The options position produced a 34.1% yield on debit for a +1,556% annual rate.
C publishes earnings on Wednesday before the opening bell.
I shall be looking at three earnings plays today, all of them banking companies: C, GS and USB.
As is common within the sector the three showed exceptionally high volatility a year ago and have since settled into range. These three qualify for further consideration because each is in the top half of the range.
By Tim Bovee, Portland, Oregon, Jan. 17, 2017
(The Week Ahead is being posted late, on Monday, due to illness. There were no reports scheduled for Monday, when U.S. markets were closed for the Martin Luther King holiday.
Two major reports will be published on Wednesday, the consumer price index at 8:30 a.m. New York time and industrial production at 9:15 a.m.
On Thursday look for housing starts at 8:30 a.m.
Fed Chair Janet Yellen gives a speech to the Commonwealth Club of San Francisco on Wednesday at 8 p.m. New York time. Her topic: The Goals of Monetary Policy and How We Pursue Them.
Yellen addresses the Stanford Institute for Economic Policy Research, also in San Francisco, on Thursday at 8 p.m. Her topic: The Economic Outlook and Conduct of Monetary Policy.
The markets are closed on Monday for the Martin Luther King Holiday.
On Tuesday, I shall consider earnings plays on C, GS and USB, and on Wednesday, a play on UNP.
By Tim Bovee, Portland, Oregon, Jan. 13, 2017
I entered no new positions today and exited none.
By Tim Bovee, Portland, Oregon, Jan. 13, 2017
I have no prospects for Friday.
On Monday, I’ll be looking at an earnings play on UNH, and on Tuesday, on C, GS and USB.
By Tim Bovee, Portland, Oregon, Jan. 12, 2017
Bank of America Corp. (BAC)
Update 1/20/2016: BAC shares fell after publishing earnings and thereafter traded in a range. Declining implied volatility carried the position to 28% of maximum potential profit. My profit target on iron fly positions is 25%.
Shares declined by 1.1% over eight days, or a -50% annual rate. The options position produced a +39.4% yieled on debit for a +1,796% annual rate.
BAC publishes earnings on Friday prior to the opening bell.
I exited a position on CSX for a small profit, nine days before the options expire.
By Tim Bovee, Portland, Oregon, Jan. 11, 2017
I have no prospective new positions on Wednesday and am unlikely to have any the rest of this week. Earnings announcements will begin in earnest next week.
By Tim Bovee, Portland, Oregon, Jan. 11, 2017
You must be logged in to post a comment.