Next Week in Weeklys – 2/9/2014

This past week there was one new name added to the list of available Weeklys – Palo Alto Networks (PANW – 65.76) which is a network security provider.

Earnings season is winding down.  This coming week there are only twenty two (only?) reporting earnings that have short dated options available for trading.  The table below shows the biggest up move (Max), biggest drop (Min), average move (ABS Avg absolute value of an average move), and the price change three months ago when the company last reported.  The historical numbers look back 12 quarters or three years and if a company does not have three full years of data then I italicize the font.

Weelys Earnings

Finally, I tend to neglect the ETFs and ETNs that have short dated options available for trading, especially during earnings season.  An interesting trade actually caught my eye on Friday in which one of the legs used short dated options.  It occurred in the iShares MSCI EAFE ETF (EFA – 65.12).  There was a seller of about 30,000 of the EFA February 28th 61 Puts at 0.16 who then purchased the same number of EFA Apr 62 Puts for 0.77 and a net cost of 0.51.  The 61 strike put is a short dated option, while the 62 strike put is a standard option that expires in April.  It will be interesting to see if at the end of February there is a seller of some other short dated EFA Put option that matches this trade to take in some income.  I have on my calendar to watch EFA puts for a seller of around 30,000 in early March.