Even though second-quarter corporate earnings are expected to show one of the largest year-over-year increases in some time -- about 20%, according to
The List, PleaseNovellus Systems ( NVLS) is the first of the big chipmakers to officially reveal the state of the semiconductor industry when it reports on July 12. But it's already taken its knocks as expectations have been ratcheted down in the wake of recent warnings and lowered revenue guidance from names across the sector, including Intel ( INTC).
Marriott's shares haven't budged in a month
This presents a bit of a dilemma as the chart suggests that a move out of the current range is, if not imminent, certainly inevitable. However, the relatively rich option premium makes me reluctant to buy short-term options. Because Marriott is unlikely to break out of this range prior to its July 15 report date, which is one day before the July options expirations, you might establish calendar spreads in both puts and calls, i.e., sell a near-term or July strangle and buy a longer-dated September straddle. The former will help defer the cost of the latter, and following the earnings release, the stock might establish a new and sustainable trend.