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Earnings Trade of the Week 10/21/2013: Polaris Industries

Polaris Industries, Inc. (PII) is scheduled to report earnings before the markets open on Tuesday, October 22, 2013.

Here is another trade that I really like. We will be seeing a lot of these in the next couple of weeks. This is simply a trade that has to be made. On this trade, we are getting extremely large break-even points., and it is very reasonable priced. This has a ton of potential and anything short of a massive price move and this trade will do great.

Here is how the stock has moved the last two quarters:

Jul 23, 2013 105.20 108.91 105.05 106.02 1,671,900 105.62
Jul 22, 2013 103.34 103.71 102.23 103.48 1,369,200 103.09

Apr 23, 2013 83.94 86.98 83.20 85.96 3,049,100 85.24

I will be placing a Neutral Calendar Spread on this trade. Here is how it is placed:

Entered Trade

Sell -10 PII Nov13 135 Call
Buy 10 PII Dec13 135 Call


Cost/Proceeds $1,300.00
Option Requirement $0.00
Total Requirements $1,300.00
Estimated Commission $30.00

Greeks / NBBO

Symbol Bid Ask IV Delta Gamma Vega Theta
PII Nov13
135 Call 5.50 5.80 37.76 -538.13 -29.65 -140.85 108.23
PII Dec13
135 Call 6.80 7.10 31.05 532.81 23.37 217.79 -58.14
Net -5.32 -6.28 76.94 50.09

NBBO 1.00 1.60. Try to pay 1.30 or less for this trade. At a maximum pay 1.45 to ensure you get in. See the attachment for the profit/loss chart.
PII NCS 102213

Free Trade of the Week 10/15/13

Intel Corporation (INTC) – Earnings Trade – After the market closes 10/15/13
This trade is so cheap to place, it simply has to be traded. It will be a Neutral Calendar Spread. Intel has never been known for moving too much after reporting. Usually, there is some after-hours action, then by the next day, the stock ends up similar to where it closed the previous day.

Currently, the trade is going for a net debit of 0.05. I can assure you that I have not seen such a low cost debit spread with the potential for a very good ROI like this is quite a while. At the absolute minimum, we will break even on this. I recommend this as my trade of the week and advise putting a lot of capital into it.

Here is how the trade is placed:

Entered Trade

Sell -100 INTC Oct13 23.5 Call
Buy 100 INTC OctWk4 23.5 Call


Cost/Proceeds $600.00
Option Requirement $0.00
Total Requirements $600.00
Estimated Commission $300.00

Greeks / NBBO

Symbol Bid Ask IV Delta Gamma Vega Theta
INTC Oct13
23.5 Call 0.45 0.46 55.70 -4,972.55 -3,367.35 -84.85 790.77
23.5 Call 0.51 0.52 34.22 5,012.36 3,001.96 154.91 -268.16
Net 39.81 -365.39 70.06 522.61

NBBO 0.05 0.07. Pay up to 0.07 for this trade, try to get 0.06 or less. Also, place a day STC order at 0.13. See the attachment for the profit/loss chart. INTC NCS 101513

Daily Options Trading Strategy – List

Current as of 10/10/13– Updated List

Tier 1: Apple (AAPL), CF Industries (CF), Google (GOOG), Netflix (NFLX), Priceline.com (PCLN), Mastercard (MA), LinkedIn (LNKD), Tesla Motors, Amazon.com (AMZN)

Tier 2: : Facebook (FB), Las Vegas Sands (LVS), VMware (VMW), F5 Networks (FFIV), SanDisk (SNDK), Sina Corp. (SINA), Lulelemon (LULU), Green Mountain Coffee Roasters (GMCR), Wynn Resorts (WYNN)

Tier 3: Molycorp (MCP), Bank of America (BAC), Alcoa (AA) EMC Corp. (EMC), MGM Resorts (MGM), Dendreon (DNDN), Salesforce.com (CRM), Nvidia (NVDA), Direxion 3X Gold Miner’s Bull ETF (NUGT)

Tier 4 (Supplementals) : Visa (V), FedEx (FDX), Ralph Lauren (RL), Ulta Salon (ULTA), Chipotle Mexican Grill (CMG), Zillow (Z)), International Business Machines (IBM), Citigroup (C),

Additions: Zillow (Z) and International Business Machines (IBM)
Removals: AK Steel (AKS), Costco (COST)

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