Entries by Philip A. Saunders

Unusual Options Activity in Southwestern Energy (SWN)

While screening for weekly options to sell today, one name that stuck out like a sore thumb was Southwestern Energy (SWN) as implied volatility in the options expiring next week is up some 13% and the company just announced earnings will be released on October 27, which falls after October expiration. Clearly something is going […]

Google 3Q Earnings Volatility Analysis & HPQ Weekly Options Activity

Google (GOOG) is scheduled to report 3Q financial results today after the close. The Street is expecting EPS of $8.74 on revenue of $7.2 billion. Shares of GOOG have exhibited decent volatility around earnings releases averaging a +/-7.3% around its last 8 earnings reports with a high of 13% emanating from last quarter’s results (see […]

Weekly Options Update: FSLR Primed For Further Downside?

Our weekly options trading screens alerted us to an opportunity in First Solar (FSLR). Shares of FSLR have fallen over 40% in the last month and a half and all signs point towards continued weakness over the coming days. Around 11:15 we got long some deep in-the-money weekly puts to ride shares lower. When looking […]

HPQ & XLF Weekly Options Trades Highlighted

Calendar Q3 earnings season kicks off tomorrow with Alcoa (AA) scheduled to report earnings after the market close. With shares of AA trading around $10, the weekly options straddle could be purchased for $0.73, representing a ~7% move for the week. Notable weekly options flow today includes buyers of over 3k Hewlett Packard (HPQ) Oct […]

Selling Weekly Put Options in Yahoo (YHOO)

Each Friday I look to sell weekly options set to expire the following Friday to take advantage of the rapid time-value decay (theta) of the weeklys heading into the weekend. Weekly options incur the greatest time value loss on the Friday before the weekend and on expiration Friday.  Options market makers tend to adjust pricing […]

Weekly Options Candidate Selection Using MarketClub

I’m frequently asked how do I go about selecting candidates for weekly options trades, and while the process does entail many steps, it all starts with utilizing the various trading tools provided by MarketClub. Click Here To View MarketClub Trading Tools & Resources            MarketClub provides a multitude of trading tools including: Portfolio watch lists Customized […]

Is Covered Call Writing Using Weekly Options A Good Idea?

The use of covered call / buy-write strategies within an investment portfolio has been found to yield slightly greater returns with only two-thirds the volatility, making it one of the more popular portfolio risk management strategies. The traditional buy-write strategy involves purchasing an underlying asset (equity, ETF, Index, etc…) and simultaneously selling a call option […]

Apple Weekly Options & The iPhone 5 Event

Apple is holding a special event this afternoon presumably to launch its newest iPhone iteration, the iPhone 5. While investors have assumed the company would be releasing the newest iPhone in the Fall, there has been, as there always is, some disagreement as to the characteristics and specifications of the new phone. Analysts will be […]

TLT Weekly Options Could Be The Call Here

The article below is the latest piece from the Technical Traders discussing 3 investment (relatively) safe havens to consider if you are looking to put money to work in this market. The Technical Trader guys suggest traders consider opportunities in the TLT, XLU and the USD (see below). Of these three I like the TLT […]

Weekly Options Traders Positioning For Further Downside In Netflix

When will the bleeding stop? Weekly options traders seem to be positioning for another leg down in Netflix (NFLX) over the coming days. On Thursday we saw traders scoop up over 13k of the 115 & 100 puts, one day before expiration. Failing to get the anticipated move, traders have turned their attention to the […]