THE WEEK AHEAD: KBH, NKE EARNINGS; IWM, IYR
EARNINGS:
KBH (64/77/15.5%) announces on Wednesday after the close. Pictured here is a Plain Jane, directionally neutral short strangle camped out at the 18 delta strikes paying 1.34 as of Friday close. Look to put on a play on Wednesday before the close, adjusting strikes as necessary to accommodate movement of the underlying between here and then.
NKW (40/45/9.1%) also announces this week (Thursday after the close), but has less than ideal metrics. Naturally, those could change during the week, so it's worth keeping an eye on.
EXCHANGE-TRADED FUNDS SCREENED FOR 30-DAY >35%:
SLV (51/39)
EWW (47/43)
TQQQ (45/92)
GDXJ (44/61)
XLE (42/55)
EWZ (42/37)
GDX (38/47)
SMH (35/40)
XOP (31/68)
USO (12/60)
I generally look for rank >50, 30-day >35% with these; only SLV meets this criteria, but the August 21st 15/19 short strangle paying .61 doesn't exactly get my motor running.
BROAD MARKET:
IWM (61/46)
SPY (38/32)
QQQ (35/31)
EFA (34/28)
Small caps are where the volatility is at. The August 21st 115/161 delta-neutral 16 delta short strangle is paying 4.34 to put on.
DIVVY-PAYING EXCHANGE-TRADED FUNDS ORDERED BY RANK:
IYR (52/40)
XLU (46/32)
HYG (40/22)
EWZ (40/57)
SPY (38/32)
EWA (38/38)
EFA (34/28)
TLT (20/17)
EMB (19/17)
Will look to ladder out in IYR in August, September for the IRA if the implied hangs in there. The 16 delta August 21st 67 short put is paying 1.39; the September 65, 1.61.
KBH (64/77/15.5%) announces on Wednesday after the close. Pictured here is a Plain Jane, directionally neutral short strangle camped out at the 18 delta strikes paying 1.34 as of Friday close. Look to put on a play on Wednesday before the close, adjusting strikes as necessary to accommodate movement of the underlying between here and then.
NKW (40/45/9.1%) also announces this week (Thursday after the close), but has less than ideal metrics. Naturally, those could change during the week, so it's worth keeping an eye on.
EXCHANGE-TRADED FUNDS SCREENED FOR 30-DAY >35%:
SLV (51/39)
EWW (47/43)
TQQQ (45/92)
GDXJ (44/61)
XLE (42/55)
EWZ (42/37)
GDX (38/47)
SMH (35/40)
XOP (31/68)
USO (12/60)
I generally look for rank >50, 30-day >35% with these; only SLV meets this criteria, but the August 21st 15/19 short strangle paying .61 doesn't exactly get my motor running.
BROAD MARKET:
IWM (61/46)
SPY (38/32)
QQQ (35/31)
EFA (34/28)
Small caps are where the volatility is at. The August 21st 115/161 delta-neutral 16 delta short strangle is paying 4.34 to put on.
DIVVY-PAYING EXCHANGE-TRADED FUNDS ORDERED BY RANK:
IYR (52/40)
XLU (46/32)
HYG (40/22)
EWZ (40/57)
SPY (38/32)
EWA (38/38)
EFA (34/28)
TLT (20/17)
EMB (19/17)
Will look to ladder out in IYR in August, September for the IRA if the implied hangs in there. The 16 delta August 21st 67 short put is paying 1.39; the September 65, 1.61.
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