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Free Earnings Trade of the Week: SINA Corporation (SINA) – After the markets close 5/21/14

SINA Corporation (SINA) – Earnings Trade- After the markets close 5/21/14

SINA Corporation (SINA) is scheduled to report earnings after the markets close on Wednesday, May 21, 2014.

Since its last earnings release, the stock has really nose-dived. Here is how the stock moved last quarter:

Feb 25, 2014 72.50 72.79 68.14 68.98 9,447,700 68.98
Feb 24, 2014 77.75 78.49 74.60 76.08 6,368,400 76.08

The 52-week range is very wide, at $45.69 – $92.83. I am expecting this stock to either tank or move up a lot tomorrow, and I will be placing a Strangle with June expirations. 9/10. Here is how the trade is placed:

Entered Trade

Buy 10 SINA Jun14 50 Call
Buy 10 SINA Jun14 45 Put

Requirements

Cost/Proceeds $3,100.00
Option Requirement $0.00
Total Requirements $3,100.00
Estimated Commission $30.00

Greeks / NBBO

Symbol Bid Ask IV Delta Gamma Vega Theta
SINA Jun14
50 Call 1.41 1.46 47.36 356.02 58.29 50.30 -40.12
SINA Jun14
45 Put 1.62 1.69 49.00 -345.45 55.73 49.75 -40.14
Net 10.57 114.02 100.05 -80.26

NBBO
3.03 3.15. Try to pay 3.10 or less for this trade, but you can go up to 3.30 if it gets late and your order isn’t filled.

Free Trade of the Week- Whole Foods (WFM) – Earnings Trade- After the markets close 5/6/14

Whole Foods (WFM) – Earnings Trade- After the markets close 5/6/14

Whole Foods Market, Inc. (WFM) is scheduled to report earnings after the markets close on Tuesday, May 6, 2014.

WFM is a stock that is fairly consistent making a $3.00+ price move over the years after reporting earnings. Last quarter the stock had the following price movement:

Feb 13, 2014 51.71 51.92 50.32 51.46 25,871,200 51.34
Feb 12, 2014 56.15 56.42 55.22 55.46 9,463,800 55.33

I believe thee right way to trade this stock for earnings is using a Reverse Iron Condor. A Strangle is too expensive, and generally, the stock doesn’t move that much to warrant that type of trade. A NCS allows little room for any movement, so that is definitely off the table. This is a solid trade, not providing a great ROI, but still very good. 8/10.

Here is how the trade is placed:

Entered Trade

Buy 10 WFM MayWk2 47 Put
Sell -10 WFM MayWk2 46 Put
Buy 10 WFM MayWk2 50 Call
Sell -10 WFM MayWk2 51 Call

Requirements

Cost/Proceeds $610.00
Option Requirement $0.00
Total Requirements $610.00
Estimated Commission $60.00

Greeks / NBBO

Symbol Bid Ask IV Delta Gamma Vega Theta
WFM MayWk2
47 Put 0.99 1.04 90.12 -361.14 95.07 16.37 -245.39
WFM MayWk2
46 Put 0.66 0.70 90.56 268.88 -83.35 -14.43 217.35
WFM MayWk2
50 Call 0.81 0.83 86.73 338.96 96.48 16.01 -231.78
WFM MayWk2
51 Call 0.54 0.57 87.00 -253.01 -84.06 -13.99 203.12
Net -6.31 24.14 3.96 -56.70

NBBO 0.53 0.67. Try to pay 0.60 or less for this trade, and a maximum of 0.62. See the attachment for the profit/loss chart.

WFM RIC 5614

Akamai Technologies, Inc. (AKAM) – Earnings Trade- After the Markets Close 5/1/14

Akamai Technologies, Inc. (AKAM – Earnings Trade- After the Markets Close 5/1/14

Akamai Technologies, Inc. (AKAM) is scheduled to report earnings after the markets close on Thursday, May 1, 2014.This stock is one of the most volatile after reporting. Last quarter, the stock had the following price movement after reporting, and this wasn’t a one-time event:Feb 6, 2014 54.99 57.76 54.80 57.18 14,583,100 57.18
Feb 5, 2014 46.43 47.79 46.20 47.42 5,598,500 47.42

Looking at the strike prices, I feel they are very reasonably priced, especially if there is anywhere near the movement of the last few quarters.

What I really like about this trade is that while it is at a Strangle price, it is more like a Straddle, and that we can buy the June 2014 expirations at not much more cost than the May 2014’s. This is a must-trade, and should do very well.

Here is how the trade is placed:

Entered Trade

Buy 10 AKAM Jun14 55 Call
Buy 10 AKAM Jun14 52.5 Put

Requirements

Cost/Proceeds $5,360.00
Option Requirement $0.00
Total Requirements $5,360.00
Estimated Commission $30.00

Greeks / NBBO

Symbol Bid Ask IV Delta Gamma Vega Theta
AKAM Jun14
55 Call 2.72 2.81 39.87 484.00 50.01 79.68 -32.41
AKAM Jun14
52.5 Put 2.49 2.59 41.71 -393.72 46.14 76.90 -31.42
Net 90.28 96.15 156.58 -63.83

NBBO 5.21 5.40. Try to pay 30 or less, and a maximum of 5.50. Try to get in this trade early.

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