#Earnings #IronCondor
Sold to open $AMZN Oct 26th 1575/1600/1950/1975 condors for 3.75.
IV is jacked up on most, so it allows for wide strangles and condors. Biggest UP move: 13.2%, Biggest DOWN move: -7.6%, Average move: 4.7%. My trade is +11.4% on the upside and -8.3% on the downside. It is a bullish positioning because of the historical ranges, but even if we drop I don’t think we can get to 1600.
Author Archives: Jeff
AMZN trade
#Earnings Sold $AMZN Oct 26th 1710p/1740p/1740c/1770c #IronButterfly for 28.10.
Exited my mistake long for 28.10 and added the correct short IB.
This is 1.90 of risk for a max gain of 28.10. It’s impossible to make the full 28.10, but if price is within 28.10 from 1740 tomorrow, you’ll win. This is better than I get for this trade usually, I guess do to elevated volatility on the market. You can’t beat the R/R.
I’m going to try another later in the day, perhaps centered higher in the belief that the stock will go up tonight.
DUST up
#ContangoETFs Sold $DUST Jan 2019 45 call for 2.00
Coupla longs
#SPXcampaign Sold to open $SPX Oct 26th 2625/2600 put spreads for 2.20.
Bought to Open $SPY Nov 21st 283 calls for .66
Bullish action looks decent today, but a collapse wouldn’t surprise me. I’ll probably close the SPX spread later today, but may hold overnight.
AMZN earnings analysis
#Earnings $AMZN reports tonight after the bell. Below are details on earnings 1-day moves over the last 12 quarters.
July 26, 2018 AC 0.51%
April 26, 2018 AC 3.60%
Feb. 1, 2018 AC 2.87%
Oct. 26, 2017 AC 13.21% Biggest UP
July 27, 2017 AC -2.48%
April 27, 2017 AC 0.71%
Feb. 2, 2017 AC -3.54%
Oct. 27, 2016 AC -5.13%
July 28, 2016 AC 0.82%
April 28, 2016 AC 9.56%
Jan. 28, 2016 AC -7.60% Biggest DOWN
Oct. 22, 2015 AC 6.22%
Avg + or – 4.69%
Bias +1.56%, slight upside bias on earnings.
With stock at 1720.00, the data suggests these ranges.
Based on current IV (expected move per TOS): 1608.25 to 1831.75
Based on AVERAGE move over last 12 quarters: 1639.38 to 1800.63
Based on MAXIMUM move over last 12 Q’s (13.2%): 1492.79 to 1947.21
Open for requests on other symbols.
Bear Market In Mid-2019?
#Market Pretty in-depth analysis, published Monday, but an interesting read and lots of historical data comparisons to geek out on.
Will The U.S. Stock Market Enter A Bear Market In Mid-2019?
https://seekingalpha.com/article/4213219-will-u-s-stock-market-enter-bear-market-midminus-2019
Downside Warning
#VIXIndicator Another Downside Warning fired today with the VIX closing at 25.23. That’s the highest close of this correction (although the intraday high was on Oct 11th), and the highest VIX close since February 12th.
This is the 4th warning of this correction. After the initial Warning, additional warnings can sometimes signal the bottom, but not always.
Whew!
I skipped all earnings trades just to watch the carnage.
In the most benign trade ever:
Closed on GTC order: $GUSH Dec 45 calls for .25. Sold in August as part of a #StrangleRoll. My 21 puts are threatened….. that’s why I never sell puts in these things!
This is the panic flush
If we don’t bottom here or in the morning, that’ll be all she wrote.
UVXY
#VXXGame Throwing one more out there…
Sold $UVXY March 112 call for 8.75. Adding to one sold for 5.25.
New low on SPX
But pretty far below the VIX highs. This is somewhat typical… the VIX will often spike to its highest point on the first major downdraft of a correction, the calm a bit even though the index sinks lower. We need a strong flush in the market to get this correction behind us. Although we just went lower on SPX (and NDX, and Dow yesterday) it doesn’t seem like that capitulation panic we usually get at the bottom.
TQQQ calls
#LongLEAPs #SyntheticCoveredCalls
Closed on GTC order: $TQQQ Oct 26th 60 calls for .15. Sold for 1.40 on Friday. Will wait for at least a small rally before selling more.
UPS closed
#Earnings #DoubleCalendar
STC $UPS Oct 26th 115 double calendars for .64. Bought yesterday for .89, so small loss. Stock dropped too much. Could have gotten a modest profit at the open but waited for a bounce that didn’t come.
BIIB closed
#Earnings BTC $BIIB Oct 26th 285/350 strangle for .735. I had an order in for this all morning at .70. I just switched the order to .75 and it immediately filled for .735.
VLO earnings analysis
#Earnings $VLO reports tomorrow before the bell. Below are details on earnings 1-day moves over the last 12 quarters.
July 26, 2018 BO 6.85% Biggest UP
April 26, 2018 BO 2.63%
Feb. 1, 2018 BO -1.33%
Oct. 26, 2017 BO -1.78%
July 27, 2017 BO -0.58%
April 25, 2017 BO -1.48%
Jan. 31, 2017 BO -3.62%
Oct. 25, 2016 BO 4.93%
July 26, 2016 BO 4.73%
May 3, 2016 BO -3.66% Biggest DOWN
Jan. 28, 2016 BO -2.19%
Oct. 28, 2015 BO 1.53%
Avg + or – 2.94%
Bias +0.50%, slight upside bias on earnings.
With stock at 90.00, the data suggests these ranges.
Based on current IV (expected move per TOS): 85.60 to 94.40
Based on AVERAGE move over last 12 quarters: 87.35 to 92.65
Based on MAXIMUM move over last 12 Q’s (6.9%): 83.84 to 96.17
Open for requests on other symbols.
Panic?
Could today be the day we get the panic low?
MSFT earnings analysis
#Earnings $MSFT reports today after the bell. Below are details on earnings 1-day moves over the last 12 quarters.
July 19, 2018 AC 1.79%
April 26, 2018 AC 1.65%
Jan. 31, 2018 AC -0.78%
Oct. 26, 2017 AC 6.41%
July 20, 2017 AC -0.57%
April 27, 2017 AC 0.27%
Jan. 26, 2017 AC 2.34%
Oct. 20, 2016 AC 4.20%
July 19, 2016 AC 5.31%
April 21, 2016 AC -7.17% Biggest DOWN
Jan. 28, 2016 AC 5.82%
Oct. 22, 2015 AC 10.07% Biggest UP
Avg + or – 3.87%
Bias +2.45%, fairly strong upside bias on earnings.
With stock at 107.00, the data suggests these ranges.
Based on current IV (expected move per TOS): 100.91 to 113.09
Based on AVERAGE move over last 12 quarters: 102.38 to 110.62
Based on MAXIMUM move over last 12 Q’s (16.2%): 95.78 to 117.22
Open for requests on other symbols.
Puts and Calls
#ShortPuts #ContangoETFs Sold $SOXL Feb 75 put for 7.00. This one is getting a little nerve wracking, breaking 100 today. I have 3 shorts; won’t be selling new ones, and rolling any that get breached.
So many earnings trades, so little time
I’m looking at a lot of symbols today. I’m only going to post this one without being asked. Please let me know of any symbols you would like to see this analysis for and I’ll be happy to post.
#Earnings $TSLA reports today after the bell. Below are details on earnings 1-day moves over the last 12 quarters.
Aug. 1, 2018 AC 16.18% Biggest UP
May 2, 2018 AC -5.54%
Feb. 7, 2018 AC -8.62% Biggest DOWN
Nov. 1, 2017 AC -6.79%
Aug. 2, 2017 AC 6.50%
May 3, 2017 AC -5.00%
Feb. 22, 2017 AC -6.40%
Oct. 26, 2016 AC 0.87%
Aug. 3, 2016 AC 2.13%
May 4, 2016 AC -4.95%
Feb. 10, 2016 AC 4.73%
Nov. 3, 2015 AC 11.17%
Avg + or – 6.57%
Bias +0.36%, no significant directional bias on earnings.
With stock at 290.00, the data suggests these ranges.
Based on current IV (expected move per TOS): 255.48 to 324.52
Based on AVERAGE move over last 12 quarters: 270.94 to 309.06
Based on MAXIMUM move over last 12 Q’s (16.2%): 243.08 to 336.92
EW Dbl Cal closed
#Earnings #DoubleCalendar
Sold to close $EW Oct26/Nov2 150 call/put calendars for 2.475 (avg price). Bought yesterday for 1.40.
ILMN closed
#Earnings BTC $ILMN Oct 26th 275/350 strangles for .40. Sold yesterday for 2.65.
Earnings bonanza
#Earnings Wednesday’s full up: FFIV, LVS, MSFT, NOW, TSLA, V, WHR, and then Thursday morning: AAL, BMY, CELG, COP, SHOP, SWK, TWTR, VLO.
How many trades can I place in a 6.5 hour period?
Dbl Cal for UPS and EW
BTO $EW Oct 26th/Nov 2nd 150 call/put double calendars for 1.40
BTO $UPS Oct 26th/Nov 2nd 115 call/put double calendar for .89
SPX puts & UVXY call sold
#SPXcampaign Intended as a day trade… doubtful that I’ll hold overnight.
Sold $SPX Oct 26th 2700/2675 put spreads for 5.95.
Also, sold $UVXY Jan 2019 112 call for 5.25.
SPX calls closed
#SPXcampaign BTC $SPX Oct 26th 2820/2845 call spreads for .45. Sold Friday for 7.10.
This profit covers a large part of my dying long #PreEarnings trades.
ILMN earnings
#Earnings Sold $ILMN 275/350 strangles for 2.65. Analysis in my post below.
BA Earnings Analysis
#Earnings $BA reports tomorrow before the bell. Below are details on earnings 1-day moves over the last 12 quarters.
July 25, 2018 BO -0.65%
April 25, 2018 BO 4.19%
Jan. 31, 2018 BO 4.93%
Oct. 25, 2017 BO -2.84%
July 26, 2017 BO 9.87% Biggest UP
April 26, 2017 BO -0.98%
Jan. 25, 2017 BO 4.24%
Oct. 26, 2016 BO 4.68%
July 27, 2016 BO 0.82%
April 27, 2016 BO 2.88%
Jan. 27, 2016 BO -8.92% Biggest DOWN
Oct. 21, 2015 BO 1.66%
Avg + or – 3.89%
Bias 1.66%, slight upside bias on earnings.
With stock at 345.00, the data suggests these ranges.
Based on current IV (expected move per TOS): 326.25 to 363.75
Based on AVERAGE move over last 12 quarters: 332.55 to 359.45
Based on MAXIMUM move over last 12 Q’s (9.9%): 311.85 to 380.15
TSLA tomorrow
#Earnings It looks like TSLA has announced earnings date of tomorrow. Thanks @optioniceman for the heads up.
In addition to 300 call I sold earlier (and early), sold Oct 26th 230 call for 2.05
http://ir.tesla.com/events/event-details/tesla-inc-q3-2018-financial-results-and-qa-webcast
ILMN Earnings Analysis
#Earnings $ILMN reports today after the bell. Below are details on earnings 1-day moves over the last 12 quarters.
July 30, 2018 AC 12.14%
April 24, 2018 AC -3.06%
Jan. 30, 2018 AC -3.54% Biggest DOWN
Oct. 24, 2017 AC -2.83%
Aug. 1, 2017 AC 14.82% Biggest UP
April 25, 2017 AC 1.69%
Jan. 31, 2017 AC 0.92%
Nov. 1, 2016 AC -2.75%
July 26, 2016 AC 8.09%
May 3, 2016 AC 0.98%
Feb. 2, 2016 AC -3.36%
Oct. 20, 2015 AC -3.39%
Avg + or – 4.80%
Bias 1.64%, slight upside bias on earnings.
With stock at 146.00, the data suggests these ranges.
Based on current IV (expected move per TOS): 285.32 to 328.68
Based on AVERAGE move over last 12 quarters: 292.27 to 321.73
Based on MAXIMUM move over last 12 Q’s (14.8%): 261.50 to 352.50
EW Earnings Analysis
#Earnings $EW reports after the bell today. This is not one I’ve traded often, if ever, but the premium makes it look interesting. Chart is a little wacky, however. Watch your risk
Below are details on earnings 1-day moves over the last 12 quarters.
July 26, 2018 AC -8.50%
April 24, 2018 AC -3.82%
Feb. 1, 2018 AC 3.81%
Oct. 24, 2017 AC -9.55%
July 26, 2017 AC 0.64%
April 25, 2017 AC 10.49%
Feb. 1, 2017 AC -8.45%
Oct. 25, 2016 AC -17.09%
July 26, 2016 AC 5.62%
April 26, 2016 AC 0.08%
Feb. 2, 2016 AC 8.33%
Oct. 26, 2015 AC 2.76%
Avg + or – 6.60%
Bias -1.31%, downside bias on earnings.
With stock at 146.00, the data suggests these ranges.
Based on current IV (expected move per TOS): 132.96 to 159.04
Based on AVERAGE move over last 12 quarters: 136.37 to 155.63
Based on MAXIMUM move over last 12 Q’s (17.1%): 121.05 to 170.95
TSLA call
Sold $TSLA Oct 26th 300 call for 4.60.
Earnings date is not confirmed but all indications say it’ll be next week. But the uncertainty may be why this Friday’s options are jacked up.
Creative license
I took the liberty of revising Iceman’s favorite j-peg.
BIIB strangle
#Earnings Sold to Open $BIIB Oct 26th 285/350 strangle for 3.35. Filled on 1, have another 1 pending. Strikes are just outside expected move when I posted the analysis earlier. However, IV has dropped intraday and now expected move is 296 to 343, which is the same as the MAX moves over last 12 quarters.
I’ll likely sell a third later in the day, but 3 is my max at this high of a stock price.
Added to SPY
#LongCalls Bought $SPY Nov 16th 284 calls for 1.25, adding to my position.
BIIB Earnings Analysis
#Earnings $BIIB reports before the bell tomorrow morning. Below are details on earnings 1-day moves over the last 12 quarters.
July 24, 2018 BO 4.10%
April 24, 2018 BO 1.09%
Jan. 25, 2018 BO 2.08%
Oct. 24, 2017 BO -3.90%
July 25, 2017 BO -0.61%
April 25, 2017 BO 3.62%
Jan. 26, 2017 BO 2.06%
Oct. 26, 2016 AC -1.87%
July 21, 2016 BO 7.63%
April 21, 2016 BO 5.15%
Jan. 27, 2016 BO 5.15%
Oct. 21, 2015 BO 3.96%
Avg + or – 3.44%
Bias +2.37%, upside bias on earnings.
With stock at 319.00, the data suggests these ranges.
Based on current IV (expected move per TOS): 288.77 to 349.23
Based on AVERAGE move over last 12 quarters: 308.04 to 329.96
Based on MAXIMUM move over last 12 Q’s (12.1%): 294.66 to 343.34
It is rare that the implied volatility is predicting a move that is larger than the stock’s biggest moves over 12 quarters. There is decent premium beyond the IV extremes, but bid/ask spreads are wide. Stock is currently at the 200 ema.
Up, up, and away?
Equity futures prices have climbed overnight and are looking to open higher following the biggest rally in Chinese equities since 2015. China had a huge day rising 4.1%.
Read more in our Morning Lineup: https://t.co/AuqANPJSJP pic.twitter.com/yf1ShvFsmN— Bespoke (@bespokeinvest) October 22, 2018
Econ Calendar for week of Oct 22-26, 2018
Be sure to periodically click Home/REFRESH to keep Bistro features updated.
TQQQ synthetic
#SyntheticCoveredCalls Sold $TQQQ Oct 26th 60 calls for 1.40. Against my 2020 66.67 #LongLEAPs
PG rated
Procter & Gamble $PG is up 7.26% today on earnings. Its prior best one-day reaction to earnings since 2001 was +4.33% back in January 2002! Best earnings reaction for PG since at least 2001 today. pic.twitter.com/yZ0Sg6GBCY
— Bespoke (@bespokeinvest) October 19, 2018
SQ synthetic
#SyntheticCoveredCalls Sold $SQ Oct 26th 80 calls for 1.25. Good premium for only one week out. It topped out at 80 last week. These are against my 2020 #LongLEAPs.
Hedging more
#VXXGame Bought to open two each of the following, giving me almost $10K in margin as they release pressure from short calls.
BTO $VXX Jan 2019 105 calls for .44
BTO $UVXY Nov 16th 112 calls for 1.25
I do think we will have at least one more drop before recovery.
SPX calls sold
#SPXcampaign Sold to Open $SPX Oct 26th 2820/2845 call spreads for 7.10.
These expire a week from today.
ISRG closed
#Earnings BTC $ISRG Oct 19th 490 puts for .53. Sold the 490/565 strangles yesterday for 5.25. I’m letting the calls expire.
PYPL synthetic
#SyntheticCoveredCalls Sold to Open $PYPL Nov 2nd 88 calls for 1.20.
These aren’t really that covered, as I have the Jan 2019 100-strike #LongLEAPs, which are trading for about 1.00.
Also looking to sell calls in $SQ, where premium is much higher than PYPL, so I’m waiting to see if it tops out.
ISRG Earnings
#Earnings Sold $ISRG Oct 19th 490/565 strangles for 5.25. My strikes are -6.7% and +7.6% OTM.
I’m skipping the $SKX straddle… I think the stock is too low already to drop far enough, and I don’t see it blasting higher in this market. Watch me be wrong in 10 minutes!
UVXY
Filled near the highs: Sold $UVXY Jan 2020 112 call for 14.50.
#VXXGame
AXP Earnings Analysis
#Earnings $AXP reports after the bell. Below are details on earnings 1-day moves over the last 12 quarters.
July 18, 2018 AC -2.72%
April 18, 2018 AC 7.58%
Jan. 18, 2018 AC -1.83%
Oct. 18, 2017 AC -0.19%
July 19, 2017 AC -0.67%
April 19, 2017 AC 5.91%
Jan. 19, 2017 AC -0.63%
Oct. 19, 2016 AC 9.02% (Biggest UP)
July 20, 2016 AC -1.62%
April 20, 2016 AC 0.90%
Jan. 21, 2016 AC -12.10% (Biggest DOWN)
Oct. 21, 2015 AC -5.24%
Avg + or – 4.03%
Bias -0.13%, so really no significant bias up or down.
With stock at 102.70, the data suggests these ranges.
Based on current IV (expected move per TOS): 98.76 to 106.64
Based on AVERAGE move over last 12 quarters: 98.56 to 106.84
Based on MAXIMUM move over last 12 Q’s (12.1%): 90.27 to 115.13
This one goes to eleven
#LongLEAPs Bought $TQQQ Jan 2020 66.67 call for 11.00, adding to my position. I forgot to sell short-term calls on Tuesday’s rally, but that’s the plan!
SKX Earnings Analysis
#Earnings $SKX reports after the bell. Below are details on earnings 1-day moves over the last 12 quarters.
July 19, 2018 AC -20.99%
April 19, 2018 AC -27.04%
Feb. 8, 2018 AC 7.54%
Oct. 19, 2017 AC 41.44% (Biggest UP)
July 20, 2017 AC 0.67%
April 20, 2017 AC -2.56%
Feb. 9, 2017 AC 19.32%
Oct. 20, 2016 AC -17.26%
July 21, 2016 AC -22.34%
April 21, 2016 AC 6.26%
Feb. 10, 2016 AC 3.93%
Oct. 22, 2015 AC -31.50% (Biggest DOWN)
Avg + or – 16.74%
Bias -3.54%, a negative bias on earnings
With stock at 26.50, the data suggests these ranges.
Based on current IV (expected move per TOS): 22.70 to 30.30
Based on AVERAGE move over last 12 quarters: 22.06 to 30.94
Based on MAXIMUM move over last 12 Q’s: 15.52 to 37.48
ISRG Earnings Analysis
#Earnings $ISRG reports after the bell. Below are details on earnings 1-day moves over the last 12 quarters.
July 19, 2018 AC -0.86%
April 17, 2018 AC 8.17% (Biggest UP)
Jan. 25, 2018 AC -2.12%
Oct. 19, 2017 AC 3.39%
July 20, 2017 AC -4.55%
April 18, 2017 AC 6.36%
Jan. 24, 2017 AC 5.09%
Oct. 18, 2016 AC -5.56% (Biggest DOWN)
July 19, 2016 AC 4.63%
April 19, 2016 AC 3.34%
Jan. 21, 2016 AC 1.89%
Oct. 20, 2015 AC 5.58%
Avg + or – 4.30%
Bias +2.11%, an upside bias on earning
With stock at 542.00, the data suggests these ranges.
Based on current IV (expected move per TOS): 510.43 to 573.57
Based on AVERAGE move over last 12 quarters: 518.72 to 565.28
Based on MAXIMUM move over last 12 Q’s: 497.72 to 586.28
Ticks nix my VIX pick
#LongPuts I still got two weeks left on my long $VIX Oct 30th 16 puts. But market isn’t cooperating yet, so I want to add to the probability that I’ll catch the drop.
Bought to Open $VIX Nov 20th 16 puts for 1.10.
GPC done and done
#PreEarnings Sold to close $GPC Oct 19th 100 calls for .25. Bought for 1.28, avg price.
UVXY
#VXXGame Highest Strikes
Sold $UVXY Dec 21st 112 call for 3.10 (yesterday)
Sold $UVXY March 112 call for 5.25 (today)
BOILing over again
#ContangoETFs
Sold $BOIL Dec 45 call for 2.45
Sold $BOIL Jan 45 for 3.80, adding to my position
A Pre-earnings trade preVALEs
#PreEarnings Sold to close $VALE Oct 26th 15.5 calls for .70. This is a double-sized position, so I closed half. Leaving the other half. Avg purchase price .477.
FOMC minutes at 1pm ET / 11am PT
Could throw some volatility into the afternoon.
Getting SQ
#LongLEAPs #LongCalls
Bought to open $SQ Jan 2020 110 calls for 7.90, adding to the position I started yesterday.
Will wait to sell short term calls on rallies.
EOG and SHOP
#PreEarnings Following on a couple of Mama’s trades; these two symbols have been good for me lately.
Bought $EOG Nov 2nd 125 calls for .94. Earnings on Nov 1st pm
Bought $SHOP Oct 26th 150 calls for 1.90. Earnings on Oct 25th am
URI earnings data
#Earnings $URI reports after the bell. Below are details on earnings 1-day moves over the last 12 quarters.
July 18, 2018 AC 1.07%
April 18, 2018 AC -6.54%
Jan. 24, 2018 AC -1.94%
Oct. 18, 2017 AC 0.05%
July 19, 2017 AC 3.23%
April 19, 2017 AC -5.19%
Jan. 25, 2017 AC 11.20%
Oct. 19, 2016 AC 4.69%
July 20, 2016 AC 9.14%
April 20, 2016 AC 7.86%
Jan. 27, 2016 AC -18.37%
Oct. 21, 2015 AC 9.97%
Avg + or – 6.60%
Bias +1.26%
With stock at 139.00, the data suggests these ranges.
Based on current IV (expected move per TOS): 129.43 to 148.57
Based on AVERAGE move over last 12 quarters: 129.82 to 148.18
Based on MAXIMUM move over last 12 Q’s: 113.47 to 164.53
GUSH down
#ContangoETFs BTC $GUSH Dec 21st 57 call for .50. Sold for 5.20 on July 9th.
And another Boom… NFLX
#Earnings This may bode well for the market if NFLX is going to gap this high.
Correction Data
#VIXindicator Looking back at all 54 Downside Warnings gives us some data to view our current correction. Below are three charts with the Average Move down on each day of the correction. (I omitted the black swan 2008 financial crisis).
Day 1 is the day the Downside Warning fired (at the close). The percentages are how far the LOW of the day on $SPX has moved, as measured from the CLOSE of the day before the warning. So in the current correction (in color), which fired on Oct 5, the day 1 move of -1.1% is the low on Oct 5th, measured from the close on Oct 4th. Day 2 is the low on Monday the 8th, and so on.
The first chart includes all 54 corrections. The first three days include all 54, but the 4th day is an average of 53 corrections, since one was only three days long and drops off the list. This only goes to 23 days… the longest correction lasted 165 days. The data here says we are above average so far.
Considering the current correction is now 8 days long, I created the second chart, which looks at only those corrections that lasted between 9 and 19 days. The data here says we are above average for short corrections, so this one may end up being a little longer.
And the third chart is those corrections that were in the 4-8% range on days 4-7, just like our current one. This data suggests we may stay in the current range (down 5% or so) for several days to come).
Or it all may mean nothing! But it’s fun to geek out occasionally.
Boom
Panic buying into the close!
All of my long #Pre-Earnings trades (except CAT) are back on the map today, although definitely still weak. $VALE and $AMZN are best, at breakeven…. and that’s with VALE being the only underlying that is NOT up today.
CAT scratch fever
#PreEarnings It’s feverish of me to add to such a dog, but it actually lowers my cost basis to .567, which I think gives this a good shot at breaking even. Plus, it only costs me scratch.
Bought $CAT Oct 26th 165 calls for .06, adding to my position.
SQ long
#LongLEAPs I sold my stock and Jan 2019 60 calls on the 5th, when $SQ was at 94.50. Man, what a drop! Now looking to leg in long again.
Bought to Open $SQ Jan 2020 110 call for 7.40.
Sold $SQ Oct 26th 80 call for 1.50.
I play this one a bit differently than @fuzzballl, going fairly far OTM rather than ATM. SQ topped out at 101.15 on Oct 1st, and this LEAP was going for 19.00 and higher.
IBM earnings data
#Earnings Below are details on $IBM earnings 1-day moves over the last 12 quarters.
July 18, 2018 AC 3.26%
April 17, 2018 AC -7.53%
Jan. 18, 2018 AC -3.99%
Oct. 17, 2017 AC 8.86%
July 18, 2017 AC -4.20%
April 18, 2017 AC -4.91%
Jan. 19, 2017 AC 2.24%
Oct. 17, 2016 AC -2.61%
July 18, 2016 AC -0.17%
April 18, 2016 AC -5.59%
Jan. 19, 2016 AC -4.87%
Oct. 19, 2015 AC -5.74%
With stock at 142.00, the data suggests these ranges.
Based on current IV (expected move per TOS): 135.23 to 148.77
Based on AVERAGE move over last 12 quarters: 135.61 to 148.39
Based on MAXIMUM move over last 12 Q’s: 129.42 to 154.58
NFLX earnings data
#Earnings Below are details on $NFLX earnings 1-day moves over the last 12 quarters.
July 16, 2018 AC -5.24%
April 16, 2018 AC 9.18%
Jan. 22, 2018 AC 9.97%
Oct. 16, 2017 AC -1.57%
July 17, 2017 AC 13.54%
April 17, 2017 AC -2.64%
Jan. 18, 2017 AC 3.86%
Oct. 17, 2016 AC 19.02%
July 18, 2016 AC -13.12%
April 18, 2016 AC -12.97%
Jan. 19, 2016 AC -0.13%
Oct. 14, 2015 AC -8.29%
With stock at 333.00, the data suggests these ranges.
Based on current IV (expected move per TOS): 299.36 to 355.64
Based on Average move over last 12 quarters: 305.38 to 360.62
Based on MAXIMUM move over last 12 Q’s: 269.66 to 396.34
Good morning
#Earnings looking good for financials, lifting futures.
Not much
Sat on my hands today… I don’t know whether to short or go long… need another day!
#ContangoETFs
BTC $DUST Nov 16th 49 call for .25. Sold for 2.50 on Aug 15th.
BTC $DUST March 15th 60 call for .80. Sold for 3.00 on Aug 16th.
Bought to Open $UVXY Nov 9th 112 call for 1.30. A hedge against short calls. I’d rather be selling it, but gotta stay safe!
Good morning!
The stock market looks like it is due for much more pain, even as it teases with comeback rallies https://t.co/YI4cKTPBsr
— CNBC (@CNBC) October 15, 2018
How high will we bounce before going negative?
Anyone got technicals on it?
Fat fingers
#LongCalls Meant to enter a trade to buy more at 1.35. But I entered “sell” instead, so was filled at the market price. Good thing SPY bid/ask is so tight..
STC $SPY Nov 16th 285 calls for 1.80. Bought for 2.71 yesterday.
To avoid day-trade issue on my smallest account, I moved down a strike.
BTO $SPY Nov 16th 284 calls for 2.15. Adding more if we flush down further today.
Econ Calendar for week of 10/15/18
I’m going to start posting this on the Friday before, rather than Monday morning. Note that this calendar is always available immediately in the menu at the top of the Bistro page.
Link to calendar website: http://mam.econoday.com/byweek.asp?cust=mam
AMZN and UVXY
#PreEarnings Bought $AMZN 1890/1900 long call spreads for 3.20. AMZN dropped 300 points in 8 trading days. I think it can raise 110 from here in 14 days.
#VXXGame Sold $UVXY Jan 2019 95 call for 6.90.
SPX calls closed
#SPXcampaign Closed on GTC order: $SPX Oct 19th 2935/2960 call spreads for .15. Sold for 2.90 on Monday.
