lack of conviction, earnings parade ahead

  • after making our morning rounds with the brokers today the theme was clear: low volume and low conviction in the institutional community from last week is carrying over into at least today.
  • with the bulk of earnings season results to hit the tape as of this afternoon post close folks don't want to learn out of any windows…nor do we
  • one name everyone will be watching is AAPL…out with results tuesday (tomorrow) after the bell.
  • we will start looking for potential earnings season trades as of tomorrow morning
  • in particular we are looking for large one-day selloffs or rallies in a stock post its earnings.  we would then look to sell either far out of the money calls or puts. 
  • if a stock rallies we would sell far otm puts, if it falls we would sell far otm calls
  • we will update you on this in real time as these movers start showing up

 

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