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Sellputs

Sell puts on volatility spikeThe precious metals sector was down hard yesterday on anticipation of further equity market upside post Trump Congress speech today. In this context, SLW was down most on twice average volume. While this would normally make us stay away from the shares, it offers excellent yields on the volatility spike, and a potential opportunity to build a position on the precious metal should the position be assigned: - Indicative prices as per last close - SELL SLW 16JUN17 $18 PUT = 1.02 (5.19% over 108 days, or 17.53% annualized) SELL SLW 16JUN17 $17 PUT = 0.55 (2.80% over 108 days, or 9.45% annualized)
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by HAL9000
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Sell volatility on the spike post numbers.POOR FUNDAMENTALS CONFIRMED Macy's just released disappointing sales figures and guidance. Announcing 68 store closures and the layoff of 10,000 employees. The stock is indicated 10% down to 32.20. Consensus is already quite down-beat on the story, and likely to become even more so. Expect downgrades on the back of the news. VOLATILITY PICKUP EXPECTED The negative trend has been playing out and at the current pre-market price the stock is already down 30% from the top. It is likely to be oversold at the open and the volatility should soar. SELL OTM SHORT-DATED PUTS The 10% OTM puts maturing 20 Jan 2017 were paying 14.9% per annum at the close of yesterday. At the open, similar options should pay even more dearly for investors willing to take the risk. In the worst-case scenario, get long the stock 40% below the recent top. Sell M 20jan17 10% OTM ($29) puts and expect >15% annualized - Will confirm pricing after the open.
NYSE:M
by HAL9000