With earnings set to be announced in HD, WMT on 11/17 (Tuesday) before market open, look to put on plays in these before Monday's NY close.
Naturally, a lot could happen on Monday with price (particularly with HD, which was off about 3% in today's trading), but I would look to the Nov 27th expiry for a short strangle in HD (currently a 113/127 will net you a 1.18 credit or about $118/contract).
WMT, unfortunately, doesn't currently look to be particularly attractive from a premium selling standpoint right now, although that could change (unlikely, . At the moment, a Nov 27th 53/59.5 short strangle will only bring in a .57 credit or $57/contract. Personally, I generally look for at least a 1.00 credit in these plays, and I generally pass on plays that offer less than that in premium unless I am (a) bored out of my skull; or (b) have a large percentage of buying power sitting on the sidelines doing a whole lot of nothing .... .
Naturally, a lot could happen on Monday with price (particularly with HD, which was off about 3% in today's trading), but I would look to the Nov 27th expiry for a short strangle in HD (currently a 113/127 will net you a 1.18 credit or about $118/contract).
WMT, unfortunately, doesn't currently look to be particularly attractive from a premium selling standpoint right now, although that could change (unlikely, . At the moment, a Nov 27th 53/59.5 short strangle will only bring in a .57 credit or $57/contract. Personally, I generally look for at least a 1.00 credit in these plays, and I generally pass on plays that offer less than that in premium unless I am (a) bored out of my skull; or (b) have a large percentage of buying power sitting on the sidelines doing a whole lot of nothing .... .
