RCL 2Q Earnings Volatility Preview: Royal Caribbean (RCL) is scheduled to report 2Q12 financial results tomorrow morning before the market opens. August at-the-money options in RCL appear to be on the cheaper side heading into earnings. Using yesterday’s closing prices, at-the-money options are implying a 4.3% earnings related move, below its average historical earnings move of +/-7.2%....
The energy sector, along with the rest of the market, has taken a beating over the last month but with the price of crude approaching significant support we searched for ways to monetize a “bottoming” view using options. For purposes of our analysis we examined the XOP, the SPDR S&P Oil & Gas Exploration & Production ETF, in hopes of identifying trends and trading...
Trading in Gold related instruments has been active during the most recent market downturn but not as active as one would expect and definitely not in the direction one would expect with equities collapsing. As of yesterday’s close the S&P500 is down 9% since May 1 primarily on European concerns and less than encouraging US economic numbers. Gold has not been immune to the recent...
The Week Ahead. Our Earnings Volatility Monitor highlights companies scheduled to report earnings over the coming week, paying close attention to what near-term options are implying for earnings moves in comparison to how the names have moved historically on earnings. Fairly light earnings calendar this week. The most notable names set to release results include Hewlett-Packard (HPQ), Dell...
What seems like our favorite tech company of late, Research In Motion (RIMM), is scheduled to report 3Q financial results next week on Thursday December 15th after the market close. Shares of RIMM have averaged a +/-10% move over its last 8 earnings announcements, with 5 of the reports pushing shares strongly to the downside (see chart below):
RIMM Historical Earnings Volatility
The $64,000...
Mike Dillard and the team over at The Elevation Group have put together a series of videos revealing how to create (or recover) incredible wealth during today’s economic crisis. His team has generated returns of over 280% since 2008, while most investors are still recovering from the massive losses incurred during the down swing. So for that reason alone I recommend checking out the first...
Traditional options expiration is upon us, and as such today we will continue our discussion on options expiration strategies, which we briefly touched upon in last week’s report. But before we dive in, let’s talk RIMM. With shares of RIMM trading at $17.58 last week we suggested traders consider purchasing the Dec 17.5-16 1×2 put spread to take advantage of elevated volatility and...
Last week in The Weekly Options Report we highlighted 2 strategies to consider heading into the coming week: 1) selling downside puts in Yahoo (YHOO) and 2) long weekly straddles in Cisco (CSCO) heading into earnings. While the YHOO trade was clearly a winner, the CSCO trade, for some, is still up in the air with one trading day remaining. Why do I say “for some”, because most perceptive...
Vol is Back…or is it? Another eventful week coming to a close, as markets have seemingly been able to shake off Euro Zone concerns and look poised for positive weekly gains. After spending a few solid days below the 30-level, the VIX skyrocketed 16% on Tuesday only to give much of it back by market close on Thursday. Our MarketClub Signals System had a pretty solid week producing 2 winning day...
Markets are in a sharp decline today amidst renewed Euro Zone concerns. The VIX has gained over 20% on the day thus far, currently standing at 36. I know VIX options activity over the last few sessions has suggested investors were anticipating volatility to subside throughout the remained of the year, but I never got quite comfortable with the ‘fear gauge’ hovering below the 30...