Get started

NKE

NKE -- POST SPLIT/EARNINGS PREMIUM SELLING PLAYAfter its split and shortly post-earnings, NKE still enjoys a fairly high level of volatility such that it offers a 1.00 credit plus premium setup (rank 53/implied 24). Here's a setup: NKE 58/67 Feb 12th short strangle POP%: 74% Max Profit: 1.07 credit ($107/contract) BPE: Undefined Break Evens: 56.93/68.07 Notes: I ordinarily only want to enter a short strangle when the implied volatility rank exceeds 70%. However, my guess is that the split may have affected the 52-week vol stat (don't quote me on that), so I'm willing to play it even though its volatility isn't above the 70th percentile ... . That being said, we've got earnings upon us, so I'll have to look at it again at market open, see what buying power I have available, and make a decision as to whether I want to enter a 45 DTE setup here or not.
NYSE:NKE
by NaughtyPines
WEEK OF 1/4 -- EARNINGS TO PLAY VIA OPTIONS: MON, BBBY, WBAAlthough I traditionally see earnings season as beginning with the first play in the alphabet (AA), there are some that occur before AA that I've frequently played. Next week, it's MON, BBBY, and WBA. MON announces earnings on 1/6 before market open (look to put on that play before Tuesday NY close); WBA, 1/7 before market open (put on Wednesday before market close); BBBY after market close on 1/7 (Thursday). MON's implied volatility rank is currently 63, has an implied volatility of 31, and a short strangle appears to offer nearly 1.00 in credit ($100 per contract) for a 93/104 short strangle, Jan 15th expiry (currently .97 at the mid price). BBBY (rank 49/implied 45) needs to have its implied pop a bit to make it 1.00+ attractive; I generally only like to play these when the implied volatility rank is high (70+) and it's implied is kind of right in the middle of its 52-week range right now. WBA (rank 83/implied 41): the 78.5/91.5 Jan 15th short strangle is currently going for 1.05 at the mid price. I looked at other earnings announcement plays for next week (CUDA, FINL, KBH, HELE, for example), but none of them look particularly attractive for an options strategy because liquidity is poor on the options end of things and/or the underlying doesn't offer weeklies.
M
by NaughtyPines
NKE EARNINGS PLAYNKE announces earnings on 12/22 (Tuesday) after market close, so look to put on your play before NY close. Here's the standard short strangle setup: Dec 31st 118/141 short strangle POP%: 75% Max Profit: 1.25 credit ($125)/contract BPE: ~$1572 BE's: 116.75/142.25 Note: I ran an iron condor setup, but it looks like it will generate less than a .50 credit/contract ... . I would also note that it may be less than ideally liquid, so you may want to shoot for a higher fill price if the opportunity presents itself.
NYSE:NKE
by NaughtyPines
1