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WLL

THE WEEK AHEAD: IT'S EYEBALLS ON THE FEDUgh. Doing my weekly market review/screening and there is literally nothing high IVR/high IV to play ... . Nada ... . Zilch ... . One option is to sell puts in one of these "just high IV" underlyings: VRX: April 21st 11 goes for .56 AKS: April 21st 7 goes for .31 AMD: April 21st 13 goes for .66 WLL: April 21st 8 goes for .28 CLF April 21st 8 goes for .34 X: April 21st 32 goes for 1.25 These are all at or around the 30 delta ... . Those plays, however, are not my "favorite girls to dance with at the ball." For earnings, what little "quality" stuff is left to this season is still a few days out: FDX (IVR 92/IV 30) (3/21 AMC) GME (IVR 73/IV 46) (3/23 AMC) MU (IVR 76/IV 47) (3/23) VIX: For a "Term Structure" play,* the earliest expiry where the 50 delta strike is at 16 or greater and pays ~2.50/contract is June, and that's 101 DTE ... . Of course, we have that little Fed shindig going on next week. Implied volatility and the VIX can turn on a dime, but I've been waiting for VIX to turn on a dime for weeks ... .
TVC:VIX
by NaughtyPines
2
NEXT WEEK'S COVERED CALL CANDIDATES: NE, CLF, AMD, WLL, OASHere are my candidates for covered calls next week. Right now, they're based solely on ROC metrics, the key being to get at least a 10% ROC if the shares are called away at the short call strike. Additionally, the focus is on sub 10.00 debit plays; underlyings of higher dollar value are generally more amenable to other strategies. After looking at the charts, as well as doing some due diligence on the companies, I'll cull the herd ... . $NE (O&G): Buy shares at 6.21; sell the Sept 30th 6.5 call; 5.85 db; $65 max profit (11% ROC). $CLF (Mining): Buy shares at 6.09; sell the Sept 30th 6.5 call; 5.75 db; $75 max profit (13% ROC). $AMD (Semiconductor): Buy shares at 7.62; sell the Sept 30th 8 call; 7.21 db; $79 max profit (11% ROC). $WLL (O&G): Buy shares at 8.04; sell the Sept 30th 8.5 call; 7.36 db; $114 max profit (15.5% ROC). $OAS (O&G): Buy shares at 10.27; sell the Sept 30th 11 call; 9.84 db; $116 max profit (11.8% ROC).
NYSE:NE
by NaughtyPines
2
NEXT WEEK'S COVERED CALL CANDIDATES: ZIOP, NVAX, LC, WLLHere's my "short list" for covered call candidates for next week generated by looking at Barcharts.com high volatility stock options list and the Dough grid: WLL buy shares at 7.66; sell Sept 16th 8 call; 7.10 debit; $90 max profit (12.7% ROC) CC buy shares at 11.45; sell Sept 16th 12 call; 10.78 debit; $122 max profit (10.6% ROC) LC buy shares at 5.40; sell Oct 21st 5.5 call; 4.85 debit; $65 max profit (13.4% ROC) ZIOP buy shares at 5.46; sell Oct 21st 6 call; 4.65 debit; $135 max profit (29.0% ROC) NVAX buy shares at 7.04; sell Oct 21st 8 call; 5.42 debit.; $258 max profit (47.6% ROC) FCX buy shares at 11.92; sell Sept 30 12 call; 10.90 debit; $102 max profit (9.3% ROC) JCP buy shares at 10.55; sell Sept 30th 11 call; 9.59 debit; $96 max profit (9.6% ROC) Notes: (1) WLL's a petro play. Because so many small petro companies are in trouble of one kind or another (i.e., shale and/or offshore oil exploration exposure), I generally prefer playing something with a little less "single company exposure" (e.g., XOP). But, hey, it meets my general rule of >10% ROC. (2) CC is a basic materials/chemical play. It spun off from DuPont and has had quite an up run here in spite of a recent punitive damages judgment for chemical dumping (weirdly, the stock dipped and then subsequently popped on the news, probably out of relief that the debacle was in the rear view mirror). (3) LC's been in a downtrend since IPO. At best, a money, take, run play. (4) I still like ZIOP. It's biopharma and has a fairly diverse pipeline such that if one drug fails, they still have more in the hopper. And that 29% ROC, well ... drop dead gorgeous if it can get to $6. (5) I'm also in NVAX (biopharm). In comparison to ZIOP, their pipeline is quite narrow and currently devoted to a single vaccine (RSV). sg.finance.yahoo.com (vaccine "could be breakthrough," but not time to "break out the champagne" (code for "it could suck ... or not")). (6) FCX (mining). I covered called this in late 2015, early 2016 which commodities were at a cyclical low and then bailed out when it appeared to be topping. Looking back, it kind of looks pricey here in comparison, and I'm not so hot on the ROC. However, it's highly liquid, and it has some room to pop to 14.00 resistance (and naturally some room to cave; the 2016 low is sub-$4). (7) JCP. Well, it's JCP. Plus, it's had a bit of a run up here, and if past performance is indicative of future results, well, it could zombie trade back to sub-$9 and with the ROC, well, not at the top of my list ... .
WLong
by NaughtyPines
SLB- Another Bull Channel Building3-5 And here we are today with yet another energy stock building a Bull channel in green. What do I need to see to make me get long? An upside crossover of the green line that's what. THEN one could place a stop on any break below the blue line of line of one's choosing. The top blue line is a tighter stop and IF IF IF an issue is going to go after breaking out of channel it won't come back-that's what you want to see anyway after an upside breakout. As usual this is all strictly for informational and educational purposes only. Trade at your own risk
NYSE:SLB
by Amazingpowerpatternguy