Straddle Prices for Companies Reporting Financial Results

Strategic Insights -

Stocks and financial institutions are preparing for the financial results report week. Several companies have priced straddle options for the week ahead, with CSX and Bank of America seeing heightened price movements. CSX's April 33 straddle is priced at 4% movement, while Bank of America's April straddle is set for a 5% movement. Other companies like Intel, Delta Air Lines, and Progressive also have straddles priced, ranging from 2.7% to 4.7% movement.

Key Takeaways:

  • CSX's April 33 straddle is priced for 4% movement.
  • Bank of America's April straddle is set for a 5% movement.
  • Intel's April 31 straddle is priced for 4.7% movement.
  • Delta Air Lines' April 43 straddle is priced for 5.5% movement.
  • Progressive's April 27 straddle is priced for 2.7% movement.
  • These straddles are designed to allow the holder to profit based on the price movement of the underlying security.
  • Straddles can provide a strategy for traders to hedge their positions or profit from price volatility.
  • CSX's straddle is associated with a DOWNTREND indicated by the Comtex SmarTrend Alert as of April 20, 2012, at $8.56.
  • Bank of America's straddle is associated with a DOWNTREND indicated by the Comtex SmarTrend Alert as of May 18, 2012, at $20.88.
  • Delta Air Lines' straddle is associated with an UPTREND indicated by the Comtex SmarTrend Alert as of April 3, 2012, at $10.33.

Statistics:

  • Straddle price for CSX's April financial results: 4%
  • Straddle price for Bank of America's April financial results: 5%
  • Straddle price for Intel's April financial results: 4.7%
  • Straddle price for Delta Air Lines' April financial results: 5.5%
  • Straddle price for Progressive's April financial results: 2.7%
  • Comtex SmarTrend Alert for CSX indicated a DOWNTREND on April 20, 2012, at $8.56
  • Comtex SmarTrend Alert for Bank of America indicated a DOWNTREND on May 18, 2012, at $20.88
  • Comtex SmarTrend Alert for Delta Air Lines indicated an UPTREND on April 3, 2012, at $10.33

Sources:

  • MidnightTrader via COMTEX
  • Comtex SmarTrend Alert, April 20, 2012
  • Comtex SmarTrend Alert, May 18, 2012
  • Comtex SmarTrend Alert, April 3, 2012