Whole Foods Market Inc (WFM) Earning Play

  • Earning Release: May 6 AMC (Tuesday).
  • Objective: Directionless. Sell IV.
  • Last Closing Price = 48.4
  • IV Percentile = 87.13%
  • IV = 0.3709
  • Floor IV = 0.23
  • Option Strategy:
    • Iron Condor: WFM Nov14 35/40/55/60
    • Note:
      • Factor in 10% Gap up and Gap Down

 

WFM Fundamental & Chart

WFM Fundamental May6-2014

WFM Earning

WFM Earning May5-2014

WFM IV Chart

WFM IV Chart May6-2014

WFM IV Risk Profile

WFM IV Risk Profile May6-2014

WFM Option Chain (August) with slippage = 0.03 to 0.05

WFM Option Chain (Aug) May6-2014

WFM Option Chain (November) with slippage = 0.02 to 0.05

WFM Option Chain (Nov) May6-2014

 

Whole Foods Market (WFM) Iron Condor Earning Trade

Chart from thinkorswim, get FREE chart here.

Original post by Marubozu from My Stocks Investing Journey.

 

Option Trading Strategy:

  • High IV before the earning.
  • Sell Vega by opening Iron Condor (45/50/60/65) one day before the earning release.
  • Close Iron Condor position after the earning release and volatility crush.

Trade Summary

  • Gross Profit = $81
  • Net Profit = $61 ($20 commission)
  • ROI (Net) = 7.9%
  • Duration = 6 days

WFM Iron Condor Trade Record Feb19-2014

WFM Chart

WFM Chart Feb19-2014

WFM IV Chart

WFM IV Chart Feb19-2014

WFM Fundamental

WFM Fundamental Feb19-2014