COST Potential trades, 12/04/13

12/4/13

COST reports earnings 12/11/13 before market open. 

It has been channeling very nicely for the past year. For the past week it has been retracing from the upper resistance, and is about 1/3 from the top. As the channel is drawn, resistance will be 129.50 and support will be 118 at Jan exp.

TOL Potential trades, 12/04/13

12/4/13

TOL reports earnings on 12/10 before market open.

It's showing 1-year support at 30.25 and 6-month resistance at 35.

CRM Earnings Play

11/13/13

CRM reports earnings on 11/18. Here are some possible trade setups. Unfortunately, there aren't any Nov4 strikes between 61 and 65. I will wait until closer to earnings before entering any of the trades. The strikes may have to move and the IV should go up.

First, an IC with $1 wide strikes. Since 61 is the highest $1 strike it has a high chance of being tested on the top.

• Iron Condor, CRM @ 57.13
• STO Nov4 60/61C 53/52P
• Credit = 0.50
• Risk = 50
• ROR = 100% in 9 days
• BE = 52.50 & 60.50

WMT Earnings Play

11/13/13

WMT reports earnings tomorrow before market open. Current IV Rank is low at 41% which is keeping premiums low. Looking back at movement-after-earnings for the past 2 years the stock dropped 6 times while only gaining twice. Here's a possible bearish IC with the expected move shown below.

• Credit = 0.35
• Risk = 65
• ROR = 54% in 2 days