PPL
The Week Ahead: ARKK, KRE, GDXJ; CFLT, COIN, DASH EarningsWith broad market implied volatility having crushed out mightily over the past couple of weeks, I'm left scrounging around in the exchange-traded fund and/or (ugh) single name space for premium. There aren't a lot of underlyings with ideal IVR/IV metrics to play, but there are a few things that still have decent IV in them, even if it isn't toward the top of its 52-week range.
There isn't anything in the exchange-traded fund space as of Friday close with an IVR >50%, but there are a few with 30-day IV >35% (which is the combination of metrics I like to see). Here there are, ranked by 30-day with stuff <$20/share weekend weeded out:
ARKK 41
KRE 41
KWEB 39
GDXJ 37
USO 36
XOP 35
Pictured here is a fairly plain Jane delta neutral short strangle in ARKK in the June expiry with the short legs camped out around the 16 delta, paying 1.00 at the mid price with break evens at 30 and 43.
The KRE June 16th 37/48 short strangle (16 delta) is paying around 1.25.
The KWEB June 16th 28 short straddle is paying around 1.95. (Going 16 delta short strangle didn't end up paying much; the 26/30.5 was paying .55).
The GDXJ June 16th 35/46 short strangle (17 delta) is paying 1.04 at the mid.
The USO June 16th 60.76 short strangle (17 delta) is paying 1.65 at the mid.
The XOP June 16th 112/143 short strangle (17 delta) is paying 3.04 at the mid.
Broad Market
Ugh. Why even go here ... . Broad market exchange-traded funds, ranked by 30-day IV:
IWM 21.3%
QQQ 20.6%
EFA 16.2%
SPY 16.1%
DIA 14.3%
Bond Funds
My only observation here is to note that TLT premium is better than SPY's (as is EMB's).
EMB 20.9%
TLT 17.0%
HYG 9.5%
AGG 7.4%
And, of course, there are earnings ... . I've screened and ranked these by >50% 30-day IV, as well as for options liquidity and thrown out underlyings that are trading at <$20/share:
COIN 111.2 (Thursday after market close)
W 107
RUN 92.9
CFLT 80.9 (Wednesday after market close)
PPL 73.4 (Thursday before market open)
FOUR 72.0
DASH 70.2 (Thursday after market close)
The drawbacks to W, RUN, and FOUR involve strike to strike granularity, which is why I haven't bothered to look up their announcement days and times. W and RUN have 1 1/2 wides; FOUR, has 5-wides. Not having 1-wides can not only make setting up delta neutral a pain; it can making rolling out a pain if you have to do that to manage the trade, so I generally avoid underlyings with weak strike granularity for earnings plays that are generally just made to take advantage of the ensuing volatility contraction. I would consequently lean toward plays in COIN, CFLT, PPL, and DASH for volatility contraction plays, looking to get into
CFLT, Wednesday before market close (since it announces Wednesday after market close).
PPL, Wednesday before market close (since it announces Thursday before market open).
COIN, Thursday, before market close.
DASH, Thursday, before market close.
Preliminary Setups:
CFLT May 19th 22.5 Short Straddle, 3.60 credit, 18.90/26.10 break evens
PPL: May 19th 29 Short Straddle, 1.03 credit. (Well, that's ... weak sauce. It's possible that the platform is misreporting 30-day, so this will have to be checked during the NY session).
COIN: May 19th 45/67 Short Strangle, 3.29 credit. (A smidge pesky, since I'd want to set up my put side tent somewhere between the 45 and the 40 strike, where there aren't any strikes at the moment.)
DASH: May 19th 52/73 Short Strangle, 1.95 credit.
Pump or Dump#2One more stock, wolves🔥
Consolidation of the price after a strong bullish movement. There is a symmetrical triangle on small frame on PPL (PPL CORP).
Get ready to catch impulse because the price is close to breakout the level.
Follow the chart and look for the breakout carefully.
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And always remember: "we don't predict, we react".
$PPL.AX setting up for a push higher - waiting game $PPL #ASX$PPL.AX setting up for a push higher - waiting game $PPL #ASX
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PPL Long Term Dividend Play - Utility Stock With 6%+ DividendNYSE:PPL NYSE:PPL
BUY ZONE 1 Trade Plan
Price currently testing 200 DMA
Volume is currently heavy
Wait for a successful defense of 200 DMA and close above down-sloping trendline ; I like to see 2 consecutive closes above prior to entry
If 200 DMA definitively fails, go to Buy Zone 2 Plan
BUY ZONE 2 Trade Plan
Wait for this area to be successfully defended by bulls ; Want to see a definitive break above down-sloping trendline with a 2 day consecutive close above.
If you are extra conservative, wait for a break and close above 20-day MA.
PPL Cup and Handle - of use for aggressive traders perhapsMidstream linked Analysis KEY, PPL, to a lesser degree ENB
Tracking some minor bearish divergence on the 4hr RSI, this is a supplemental analysis with regards to a study for KEY > trying to see if there is an overall pattern for the industry as a whole. I am not interested in looking for a sell on either of these, but I must report what I see. Thus far, both stocks have performed incredibly well over the course of the last four weeks, coinciding with a post election (US Presidential 2020) boom. The only commonality other than steady buying since Mid-November of 2020 is RSI bearish divergence on the 4 hour chart seen at this time on both stocks. Bearish divergence by itself does not guarantee lower prices in the near term, but it is a possibility. Perhaps this can point to caution for new investors looking to start a position on either of these two companies at this time, where a waiting period might provide better entries. This can also help investors looking to add to existing positions with significant upside still available over the course of the next few months for both stocks. Both stocks provide an attractive yield even at these levels for buy and hold strategies however. Current resistance on PPL is 34.80 where I would expect for at least token distribution to occur at supply levels. Next week will be key as this would be the last week of decent volume for the year of 2020. For the record, I own both companies at lower levels, and I am looking to deploy some spare cash for lack of other significant opportunities at this time as I can always use additional dividend income.
Next analysis will be fundamental for both; I will post anything of interest on either company.
PPL Gap fillingPPL did breakout, but it decided to gap up... So now we are going back down to 27.26 to fill the gap, then we have to see if it breaks up or down, once again.. Stay tuned :)
I personally have September $30 Calls if your wanting to follow or not ive been holding them since my first call on PPL at $25.37 or so.
Also DM me if you'd like to join a free trading group or have questions, we are just starting up and need some traders to help liven it up.
PPL Finally Breaking outI've been waiting for PPL to set up breakout of a few months now, and its finally here, unfortunately it formed a gap to $27.30, so it will go back down to fill that gap, but after the gap is filled the target will be: $31.02, and if it breaks from there we are going back to $36.20.
Also me and one of my buddies decided to make our own Trading Community, it is free but right now it's only about 5 people large. Message me if you'd like to help liven the place up a bit.
Also I just built a Computer and will be able to do more things... Yay
PPL Call OutAlright guys PPL is looking good right here, it looks to be reversing it's down trend and is now back on track (Bullish). RSI is showing a demand zone, MACD might cross over soon, and on the chart it is an upside down cup handle.
Before PPL has any big moves I think there is a chance it will go back to $24.66 to fill a tiny gap.
DM me for questions, or if you want to join the paid trading group!
PPL Great time to get into my long signal for PPLWhats up everyone today was a busy day for me so I wasn't able to do much charting and posting on here, but as you can see if you got into my PPL signal it was just downgraded. Which for us is a GOOD thing, we can add more to our cheap long investment for September 2020, which is a couple months away its still in profit but has gone down, If you already sold for profit this is a great time to get in once again. Right now we are trying to go back to $30.60, and unless some sort of bad news comes out we wont worry because PPL has touched a strong resistance ( Horizontal Ray ) and is bouncing back to the upside. And this is also a reliable Dividend stock that pys 1.40 a year per share, and is slowly increasing it every year for 8 years now.
Once again if anyone has questions about the paid trading group and wants to join, please direct message me and I will answer any questions that may concern you.
Also, this week im going to try to post more than I usually do. And I appreciate everyone trusting my charts and motivating me to keep going through my trading journey.
The Utes looking like they might be ready to go!After the long down move the utilities sector has gone through, it looks like it could be ready to turn around. We might be a little early here but this is what we're seeing that is telling us that it's ready to make a move higher finally:
-When you look at the 4 hour chart you can see that the price is coming out of a squeeze higher to the upside
-When looking at the RSI which is an indicator that we like to use, you can see that there is a major bullish divergence
-There has been an increase in volume the last couple of days, which bodes well for a reversal
Again, we might be a little early here but if you're able to be patient with a trade in utilities we see this thing turning around and moving higher in the near future! We will see what happens in the next couple of days!