This is my first blog and I want to make it a good one. I am going to layout a strategy I feel will be profitable for the next two days. Here is what I am looking at: Visa and Mastercard report earnings monday. MA reports Tuesday morning at 9:00am ET however I checked google finance and they release there earnings at 12:00pm ET on Monday.
I am going to be focusing only on these two stocks and the direction. My opinion is these stocks will head higher tomorrow. Currently I have positions in both.
I have 1 Call for Visa: (1) 67.5 V May @ 5.62
2 Calls for MA: (1) 250 May @ 6.7, and (1) 270 Call @ 3.3
Right now IV is around 52 for these calls and will definetly decrease after earnings, I estimated to around 40. After AXP earnings and beat, we will see a jump in both MA and V tomorrow. I will not be buying in the morning, I will sit back for a drop about 30 minutes into trading. I will be buying tomorrow more calls of V, as I expect them to runnup more than MA. I will not be buying PUTS until MA announces earnings, I will then decide to buy Puts on V as protection.
Chart is based on IV of 40
| Stock |
Contracts |
Stock Price |
Option Entry |
Option Exit |
Total Cost |
Total Sold |
Profit/Loss |
| V 67.5 call |
1 |
70 |
5.6 |
3.95 |
560 |
395 |
-165 |
| V 67.5 call |
1 |
75 |
5.6 |
7.95 |
560 |
795 |
235 |
| V 67.5 call |
1 |
80 |
5.6 |
12.67 |
560 |
1267 |
707 |
| V 67.5 call |
1 |
85 |
5.6 |
17.6 |
560 |
1760 |
1200 |
| V 67.5 call |
1 |
90 |
5.6 |
22.6 |
560 |
2260 |
1700 |
| |
|
|
|
|
|
|
|
| MA 270 call |
1 |
250 |
3.3 |
2.55 |
330 |
255 |
-75 |
| MA 270 call |
1 |
260 |
3.3 |
5.34 |
330 |
534 |
204 |
| MA 270 call |
1 |
270 |
3.3 |
9.75 |
330 |
975 |
645 |
| MA 270 call |
1 |
280 |
3.3 |
15.8 |
330 |
1580 |
1250 |
| |
|
|
|
|
|
|
|
| MA 250 call |
1 |
250 |
6.7 |
9.03 |
670 |
903 |
233 |
| MA 250 call |
1 |
260 |
6.7 |
15.13 |
670 |
1513 |
843 |
| MA 250 call |
1 |
270 |
6.7 |
22.75 |
670 |
2275 |
1605 |
| MA 250 call |
1 |
280 |
6.7 |
31.44 |
670 |
3144 |
2474 |
| MA 250 call |
1 |
290 |
6.7 |
40.81 |
670 |
4081 |
3411 |
Current Analysis for my positions. I bolded the row I believe MA and V will end up on Tuesday, for MA (if they do release on monday) will be Monday. I am hoping they release as this is part of my strategy, hoping for a runnup in V.
I am looking to get into V 75 May calls for around 3.20-3.30. I will buy 3 contracts and sell 2 before earnings on runnup. Selling before earings will still have high premium, incase V does not work out.
Keep an eye on MA, as it seems to lag behind V in terms of pecentage gain in the morning, and then catches up. If you see a 4% gain in V, and 1% in MA, pick up some MA calls close to ATM.
Good luck to all those traders out there how you enjoy the analysis.