On November 14th we looked at Pepsi (PEP) following a sharp near term sell-off that sent near term implied vol higher. It was an interesting case where one could take advantage of that implied vol …
Continue readingDec Jan
Yesterday, while Fed Chairwoman Yellen was in a QE/ZIRP time-warp squeezing U.S. stocks and Treasuries higher on increased Dovishness, I was enjoying this with my family: When I set out for a day of fun in …
Continue reading
1. GM – stock was up almost 4% today just before noon on news that Kyle Bass, the hedge fund manager who runs Hayman Capital took a stake in the stock and sees “at least …
Continue readingI initiated a range trade on STZ on January 8th ahead of its earnings report. I ended up with much more than I bargained for when I got into this position. Check out the 17 …
Continue reading
I laid out my thoughts on STZ in my earnings preview earlier today (included below). Given the high level of implied volatility, and my lack of directional bias, I basically just want to sell volatility …
Continue reading
Event: STZ reports its calendar Q4 earnings Wednesday before the open. The options market is implying about a 7% move post-earnings, which is slightly low relative to both the 4 qtr avg move of about 11%, …
Continue readingWe don’t have this trade on anymore because we were doubled up with trades in the name (read history below) and closed it for a small profit, but our plan was to paper trade out …
Continue readingTrade Update Dec 19th, 3:10 pm: I initiated a delta neutral Dec / Jan calendar in FDX yesterday before earnings because I thought the push / pull setup in the FDX story made a small …
Continue reading
As I wrote in my preview yesterday, the bull / bear case depends on the 2013 outlook from FDX. The stock looks cheap, but traders are worried about global growth headwinds. Given the legitimate points …
Continue reading
On Friday we placed two trades on the site in QCOM, the first was a Dec/Jan 62,5 call calendar, the second was a Jan 62.5/65 Call spread. Dan took off the call calendar yesterday and …
Continue reading