Looking for Volatility Heading Into Spring Break
Good morning Titan!
My kids are on spring break this week and I think we have staggered spring breaks happening all over the country this week and next week at least. If you have kids, I hope you've made plans to keep them busy.
Real quick, the top most volatile stocks on Tiblio's screeners today are:
- GRTS - 352%
- AKBA - 295%
- GOEV - 235%
- CGC - 221%
- MSOX - 214%
- FRGE - 199%
- GME - 190%
- RDDT - 181% (Fresh IPO)
Ok so if you're into it, there is some extreme volatility there. But that's too much for me, let me run down to 70-100% IV and take a look at some stocks:
- COIN - 92%
- LE - 90% (Earnings in 1 day)
- SMCI - 89% (Stock price too high)
- SNAP - 88%
- CCL 0 79%
- AFRM - 75%
- HE - 73% (Still maybe battling courts over Hawaii fire)
- UPST - 73% (Cloud AI)
- ARM - 62% (Semiconductor holding company)
Stocks going ex-dividend:
- F - 4/24 (.15)
- OKE - 4/29 (.99)
- HAS - 4/30 (.72)
- LVS - 5/6 (.20)
Trades For Today
FSLY
We were previously assigned at the 13 strike and are holding 100 shares. We can now bring in 4.2% by selling the 13.5 strike call option expiring 4/26 (31 days) for .55 or better.
If the stock closes above 13.50 on 4/26 then we realize the maximum profit of the .55 premium plus .50 in share appreciation for a total of 1.05 in just 31 days. This annualizes to 95% annual return!
If the stock stays below 13.50, then we keep the .55 realizing our 4.2% return in just 31 days and we can sell another call option.
SNAP
SNAP has been pretty stable and recently saw support above the 10.50 level. This will be a quick trade that gets us in well below that should we be assigned.
Sell the 10.50 strike put option expiring 4/19 for .65 or better. If SNAP trades above 10.50 on 4/19, the option expires worthless and we keep the premium for a 6% gain in just 31 days which annualizes to 74%!
If SNAP closes below 10.50, we'll be assigned 100 shares at the strike price.
F
This will be a more conservative trade for today as Ford tends trade around this level and is a very stable company with low IV.
We can bring in .38 (3%) by selling the 12.50 put expiring 4/26, just after Ford goes ex-dividend. We will look to close this position early ahead of the dividend for around 80-90% profit. If F closes below 12.50, we'll be assigned 100 shares at the 12.50 strike price.
Enjoy your spring break!
Disclaimer: The content of this newsletter is provided for informational purposes only and is not intended as financial advice, investment recommendation, or an endorsement of any particular security, strategy, or investment product.