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Monday, 03/14/2011 7:39:51 PM

Monday, March 14, 2011 7:39:51 PM

Post# of 731
Here is my contribution to the board…Below is a list of the up-coming earnings for this week screened for what I think will make the best strangle plays. My criteria for putting something on the list was to pick stocks that have a high float short percentage, have high OptionSlam star ratings, and have options that are not excessively overpriced. I also removed stocks that had very limited option strike prices or little option activity.

The cryptic column codes in the table are “F Shrt” = Float short percentage, “OpOver” is how overpriced ATM options are, “VolStrs” is the number of volatility stars out of the last 12 months (e.g. 6/12 means 6 stars out of the last 12), and “E Stars” is the number of earning stars for the last few earnings periods, and “Avg Ern%” is the average 1 day movement of the stock for the day after earnings. The rest of the fields should be fairly self-explanatory. The "-a" and "-b" on the dates means after or before market hours.

The goal is obviously to pick ones that make big moves (up or down). Any thoughts about which would be good plays is appreciated as well as any other feedback. I actually went in very small on ZAGG today...we’ll see how that pans out. I went with April expirations as I wanted to be able to give it a couple days to move without getting completely burnt by time decay on the March options (less upside on the move but more time for it to happen).

Finally, thanks to Lerogee as I borrowed several of his ideas in my screening.

Ticker ErnDate MrkCap F Shrt Beta RSI OpOvr VolStrs E Stars Avg Ern%
EBIX 3/14 978.36M 22.45% 1.29 60.86 ~5% 6/12 0/4 ~5%
ZAGG 3/14-a 180.76M 37.70% - 37.21 ~15% 10/12 1/4 ~5%
LLEN 3/14-a 240.63M 20.61% - 45.84 ~20% 12/12 0/3 ~5%
WSM 3/15-b 3.74B 7.03% 1.71 47.88 ~15% 4/12 1/4 ~7%
DCTH 3/15 286.25M 22.94% 1.38 34.77 ~10% 12/12 1/4 ~5%
YONG 3/15 333.25M 17.05% - 38.2 ~25% 9/12 - -
PANL 3/15-a 1.55B 11.75% 1.62 51.23 ~20% 10/12 1/4 ~7%
BPZ 3/15-a 723.09M 13.52% 2.25 52.86 ~20% 10/12 2/4 ~6%
CVVT 3/16 216.46M 19.03% -0.33 32.66 ~15% 11/12 0/2 ~5%
GES 3/16 4.11B 6.63% 1.63 49.65 ~10% 5/12 0/4 ~5%
LULU 3/17-b 5.43B 13.89% 2.64 51.66 ~10% 9/12 1/4 ~6%
LDK 3/17-a 1.54B 10.07% 2.73 30.31 ~5% 10/12 0/4 ~5%


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