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Beautiful Volatility is waiting ahead

Published on July 9, 2007

Beautiful Volatility is waiting ahead

July 9, 2007

(for details pls visit www.OptionPundit.net)

This is one of those period that arrives only once in 3 months. Welcome dear volatility. I am ready to give you a great hug.

Purely from economic calendar perspective, there are two major events this week that can move markets in either direction. International trade data on Thu (8:30am ET) followed by Retails sales data on Fri (8:30am ET). So those who would like to play in Retail Holders (RTH) or some of the retail related counter, perfect time to get in. I might be looking at SHLD.

Alcoa (AA) will officially kick-off the earning season today. I am hoping for great numbers due to strong demand but let’s see. It will be followed by Pepsi (PBG) after market is closed. DNA and YUM will be announcing on Jul 11 after market is closed. GE will announce on 13th.

Watch out for next week when many stalwarts are announcing results. To sweeten the deal, it is also July expiration week and options will be cheaper due to little time value (partially offset by rise in IV though). Time to get down to work and think hard to find underlying that will offer great risk/reward ratio.

Profitable windfalls,
OptionPundit

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