We are in the tricky part of the quarterly cycle where upcoming earnings warrant caution on options trades in individual names. Premiums get elevated ahead of the uncertainty heading into each earnings event, so that makes being long premium an undesirable idea. Meanwhile, it makes me uncomfortable getting short elevated premiums into these events because of the risk of an outsized move blowing through any short strikes I may have on.
And of course and ironically, with summer in full swing, broader indexes are seeing declining volatilities which makes it tougher to put on good credit spreads.
But your boy hasn’t given up looking for opportunities, and I see a good one shaping up in the Utilities space.