Interesting earnings play

Though there are lot of heavy-weights who are going to announce results tonight after market close and also before market opens tomorrow, there are some interesting plays.

  • PPDI, a backratio (2:1) on 37.5/35 calls seems to provide a good risk/reward profile.
  • screenhunter_4.jpgHere is the r/r chart for PPDI –
  • IBM and Yahoo surely are capable of moving the markets in either direction. I had highlighted few days back that there was unusual options transactions in Sept Yahoo 40 calls. We’ll see tomorrow if it had anything to do with positive results.
  • WM will set the pace, specially how subprime has affected banks.
  • Few other interesting plays before market opens tomorrow. I may not have time to screen all as I might rather spend time in finding opportunities vs blogging.
  • VIX hasn’t been moving much. Huge interests in May 17 and 19 calls, is something fishy?

Profitable trading, OptionPundit


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2 responses to “Interesting earnings play”

  1. simplyoptionstrader Avatar

    Hi OP,
    Thanks for the link earlier. The heavy weights like IBM, YHOO are down after market, with the exception of INTC which is only slightly up. Let’s see how MOT reports tomorrow, should be an interesting day

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