I have no prospects for entering new positions on Tuesday. I’m engaged in winding down my positions whose options expire Jan. 20, so there will be some exits.
By Tim Bovee, Portland, Oregon, Jan. 9, 2017
(The Week Ahead is being posted late, on Monday, due to illness. There were no major reports scheduled for Monday, although two Fedsters made public appearances. the usual short-term Treasury bill events also occurred on Monday.)
Two major economic reports, the producer price index and retail sales, will be published on Friday at 8:30 a.m.
I have no prospective trades for Monday.
By Tim Bovee, Portland, Oregon, Jan. 9, 2016
I entered an earnings play on WFC and exited no positions.
By Tim Bovee, Portland, Oregon, Jan. 6, 2017
Wells Fargo & Co. (WFC)
Update 1/31/2017: WFC remained steady after earnings were published, and then rose a little. Implied volatility fell, and then retraced a portion of the decline. I exited for less than my profit target in order to avoid early assignment when the stock goes ex-dividend on Feb. 1.
Shares rose by 1.43% over 25 days, or a +21% annual rate. The options position produced a +21.9% yield on debit for a +319% annual rate.
I shall use the FEB series of options, which trades for the last time 42 days hence, on Feb. 17.
WFC publishes earnings on Monday before the opening bell. I shall do an analysis and perhaps a trade within the next hour.
By Tim Bovee, Portland, Oregon, Jan. 6, 2017
No prospective new positions for Friday — no earnings announcements liquid enough to meet my standards and most high-volatility plays are disallowed because they will be publishing earnings soon. I prefer to wait for the last trading day before an announcement to place my trade.
Earnings season begins Monday with AA’ announcement.
Meanwhile, on Friday I shall continue to focus on winding up my positions that expire Jan. 20.
By Tim Bovee, Portland, Oregon, Jan. 5, 2017
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