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Big Names to Report Earnings This Week

By:Michael "Dr. Data" Rechenthin

Plus, Tesla and SPX trade ideas, backtesting on tastytrade and more

There are so many big-name companies reporting their earnings this week. Some of the bigger players are listed below.

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We have 360 names on the spreadsheet with earnings—click to download here or click the picture below.

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Big names with high IV and IV rank

The following exchange-traded funds (ETFs) have the "ideal" combination of high forward-looking implied volatility and high IV Rank. Many option traders look for this combination to sell options (and gain theta decay):

· GDX: VanEck Gold Miners ETF

· OIH: VanEck Oil Services ETF

· XHB: SPDR S&P Homebuilders ETF

· XME: SPDR S&P Metals & Mining ETF

· SMH: VanEck Semiconductor ETF

· XRT: SPDR S&P Retail ETF


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Backtesting on tastytrade

We wrote about this last week, but we decided to discuss it again because it has been requested. Click here for more information.


For now, it is only on the web version of tastytrade.


All nerds will love the ability to download logs, orders, transactions and daily settlements—all in CSV (spreadsheet) format.


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Two trade ideas

TSLA ($216) iron condor (Nov.) $4.44 Credit

Tesla (TSLA) will be one of the first big names in tech stocks to report earnings on Oct. 23 after the market close. The stock has been volatile, with a 52-week, low-high of $138-$271, and it has recently come off the highs down to $220. If you think it might stay rangebound after earnings, try a November iron condor: short the 195/185 put spread and the 245/260 call spread trades at $4.44 with enough duration to roll out if the stock moves greater than the $14 expected move through the end of the week.


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SPX ($5836) iron condor (Nov. 1) $2.90 Credit

The most active stretch of earnings comes into play this week and next: elections, new from the Federal Reserve, volatility staying bid, bonds going wild. Yet, we've chopped around $5,800-$5,900 for the past week. If you think it might continue, consider a short duration SPX iron condor (Nov. 1). Short the 5690/5680 put spread and the 5950/5960 call spread trades at roughly 1/3rd the width of the strikes at around one standard deviation out of the money.


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Sharing is caring. Forward this email to your friends so they can subscribe to our newsletters, too! Get weekly data-driven trade ideas with Cherry Picks and daily pre-market insights and trade ideas with Cherry Bomb.

Michael Rechenthin, Ph.D., (aka “Dr. Data”), managing director of research and development, has 25 years of trading and markets experience. He’s best known for his weekly Cherry Picks newsletter. On Thursdays, he appears on Trades from the Research Team LIVE.

Nick Battista, tastylive director of market intelligence, has a decade of trading experience. He appears Monday-Friday on Options Trading Concepts Live. On Wednesdays, he co-hosts Johnny Trades. @tradernickybat

For live daily programming, market news and commentary, visit tastylive or the YouTube channels tastylive (for options traders), and tastyliveTrending for stocks, futures, forex and macro.

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