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Shortstrangle

OPENING: ROKU SEPTEMBER 18TH 130/225 SHORT STRANGLE... for a 7.71 credit. Notes: Earnings, high implied. There is some call side skew here that I occasionally try to accommodate in some fashion, but just went plain Jane delta neutral at around the 17 delta. Defined Risk Alternatives: September 18th 130/140/215/225, paying 3.63 at the mid as of the writing of this post, delta/theta 2.98/4.49. September 18th 130/135/220/225, paying 1.65 at the mid as of the writing of this post, delta/theta 1.41/2.41.
NASDAQ:ROKU
by NaughtyPines
OPENING: TWTR AUGUST 21ST 32.5/45 SHORT STRANGLE... for a 1.74/contract credit. Notes: High rank/implied with earnings in 1. Looking to take profit at 50% or otherwise manage on side approaching worthless. Defined Risk Alternatives: The August 21st 26/31/45/50 iron condor, paying .98. Generally, I like to get one-third the width of the widest wing out of these, but the call side is pesky with strike granularity (i.e., strikes widen to 5-wides at >45). The only weekly with one wides above 45 is the July 31st, where the directionally neutral 30/34/41/45 is paying 1.38.
NYSE:TWTR
by NaughtyPines
THE WEEK AHEAD: MU, FDX EARNINGS; XOP, IWM, EWZEARNINGS: MU (36/64/11.7%) announces earnings on Monday after the close. Pictured here is a 19 delta short strangle in the July expiry, paying 1.55. FDX (46/59/11.4%) announces Tuesday after the close, with the 20 delta July 17th 115/147 paying 4.56. EXCHANGE-TRADED FUNDS ORDERED BY RANK AND SCREENED FOR 30-DAY >35%: EWW (59/44/12.6%) EWZ (47/63/17.7%) XLE (45/52/16.0%) GDXJ (43/60/17.7%) SMH (37/42/12.0%) GDX (36/45/14.5%) XOP (32/70/20.2%) USO (13/67/16.7%) Would probably go out to August here (54 days) ... . Looked at through the lens of what the short straddle is paying as a function of share price, it looks like I should be selling premium in XOP (20.2%), followed by EWZ (17.7%) and/or GDXJ (17.7%). BROAD MARKET ORDERED BY RANK: IWM (57/45/12.7%) QQQ (38/32/<10%) EFA (37/29/<10%) SPY (37/34/<10%) Small caps continue to be where the juice is at. IRA DIVIDEND-GENERATORS IYR (53/40/11.7%) XLU (50/33/<10%) EWZ (47/63/17.7%) EWA (46/40/11.2%) EFA (37/29/<10%) SPY (37/34/<10%) HYG (35/20/<10%) EMB (20/18/<10%) TLT (20/19/<10%) EWZ offers both better better premium as a function of stock price than IYR at the moment, as well as slightly higher yield (3.66% for the former; 3.50% for the latter). Since I've already laddered out IYR, I may dip at the EWZ well with the 16 delta short put paying .70 in August at the 22 strike, .84 in September at the 21 ... .
NASDAQ:MU
by NaughtyPines