Next week's earnings plays

I'm looking at nine potential earnings plays for analysis next week, April 4-8. Here's the list:

action	sym	earns date	am/mid/pm
4/4/2016	DRI	4/5/2016	am
4/4/2016	WBA	4/5/2016	am
4/5/2016	GPN	4/6/2016	am
4/5/2016	MON	4/6/2016	am
4/5/2016	STZ	4/6/2016	am
4/6/2016	BBBY	4/6/2016	pm
4/6/2016	CAG	4/7/2016	am
4/6/2016	KMX	4/7/2016	am
4/8/2016	DAL	4/11/2016	am

... where "action" is the date I would analyze the trade and "earns date" is the date when the announcement is made. The "am/mid/pm" column is the time of day earnings are release: before the opening bell for am, after the closing bell for pm, and between the two bells for mid.

The symbols were selected based on two criteria: A price of $30 or greater, and average volume of 1 million shares a day or greater. When there are more prospects than I can reasonably handle I'll narrow the field by raising the average volume criterion, but for next week pickings are slim since we are between earnings seasons.

As the action date approaches I'll apply other tests that will determine whether or not I do a full analysis of the trade. I'll look at the quality of the grid -- sufficient open interest to provide liquidity and high implied volatility, for example.

The final screening considers properties of the trade that can change quickly, so I make my final decisions on action day and discuss the decisions in my morning Agenda post.

-- Tim Bovee, Portland, Oregon, March 31, 2016

References

Tradecraft: Playing the odds to build winning stock market trades from options, a description of how I trade, can be read here.

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Disclaimer

Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.

No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.

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Based on a work at www.timbovee.com.