THE WEEK AHEAD: CSCO, SLV, IWM, VIX/VIX DERIVATIVES
EARNINGS:
CSCO (46/40) announces earnings on Wednesday after market close. The metrics aren't ideal here with the at-the-money 42.5 short straddle in June paying 4.39, just a smidge north of 10% of the value of the underlying (10.2% to be exact) and the month to month implied differential almost nil (June's at 40.5, July at 40.3%). Nevertheless, a bet that CSCO stays within its expected move -- the June 19th 40/46 short strangle is paying 2.00 at the mid price here with break evens at 37.99/48.01.
EXCHANGE-TRADED FUNDS ORDERED BY RANK WITH >35% IMPLIED:
SLV (62/44)
EWZ (51/63)
GDXJ (51/63)
GDX (49/51)
EWW (45/40)
XLE (41/48)
USO (34/110)
SMH (32/38)
XOP (30/61)
BROAD MARKET FUNDS ORDERED BY RANK:
IWM (52/42)
EEM (39/31)
EFA (35/24)
QQQ (30/29)
SPY (26/28)
IRA DIVVY-PAYERS ORDERED BY RANK:
EWZ (51/63), 5.15% Yield
EWA (51/42), 5.31% Yield
EWW (45/40), 4.26% Yield
IYR (43/34), 3.77% Yield
XLU (41/31), 3.48% Yield
EWU (37/28), 5.56% Yield
EFA (35/24), 3.79% Yield
HYG (28/18), 5.49% Yield
TLT (27/21), 1.79% Yield
SPY (26/28), 1.98% Yield
EMB (26/20), 4.92% Yield
Notes: Kind of a new section here to track background IV for potential acquisitional plays for the IRA in dividend yielding exchange-traded funds. Currently, running short put ladders in IYR, HYG, XLU, and EWA, but now that I've gotten organized here, may consider similar setups in EWZ (5.15% yield), EWW (5.31%), and EWU (5.56%).
VIX/VIX DERIVATIVES:
VIX finished the week at 27.98 with the /VX term structure in front months contango. Back months are still "wonky" and present a (for lack of a better word) sinuous path from here to December.
TRADE OF THE WEEK:
Pictured here is a Plain Jane delta neutral IWM short strangle in the June cycle (40 days) paying 3.37 at the mid price. The highest implied, broad market exchange-traded fund on the board at the moment.
CSCO (46/40) announces earnings on Wednesday after market close. The metrics aren't ideal here with the at-the-money 42.5 short straddle in June paying 4.39, just a smidge north of 10% of the value of the underlying (10.2% to be exact) and the month to month implied differential almost nil (June's at 40.5, July at 40.3%). Nevertheless, a bet that CSCO stays within its expected move -- the June 19th 40/46 short strangle is paying 2.00 at the mid price here with break evens at 37.99/48.01.
EXCHANGE-TRADED FUNDS ORDERED BY RANK WITH >35% IMPLIED:
SLV (62/44)
EWZ (51/63)
GDXJ (51/63)
GDX (49/51)
EWW (45/40)
XLE (41/48)
USO (34/110)
SMH (32/38)
XOP (30/61)
BROAD MARKET FUNDS ORDERED BY RANK:
IWM (52/42)
EEM (39/31)
EFA (35/24)
QQQ (30/29)
SPY (26/28)
IRA DIVVY-PAYERS ORDERED BY RANK:
EWZ (51/63), 5.15% Yield
EWA (51/42), 5.31% Yield
EWW (45/40), 4.26% Yield
IYR (43/34), 3.77% Yield
XLU (41/31), 3.48% Yield
EWU (37/28), 5.56% Yield
EFA (35/24), 3.79% Yield
HYG (28/18), 5.49% Yield
TLT (27/21), 1.79% Yield
SPY (26/28), 1.98% Yield
EMB (26/20), 4.92% Yield
Notes: Kind of a new section here to track background IV for potential acquisitional plays for the IRA in dividend yielding exchange-traded funds. Currently, running short put ladders in IYR, HYG, XLU, and EWA, but now that I've gotten organized here, may consider similar setups in EWZ (5.15% yield), EWW (5.31%), and EWU (5.56%).
VIX/VIX DERIVATIVES:
VIX finished the week at 27.98 with the /VX term structure in front months contango. Back months are still "wonky" and present a (for lack of a better word) sinuous path from here to December.
TRADE OF THE WEEK:
Pictured here is a Plain Jane delta neutral IWM short strangle in the June cycle (40 days) paying 3.37 at the mid price. The highest implied, broad market exchange-traded fund on the board at the moment.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.