Tim Bovee, Private Trader: Thursday's Finalists

Thursday, January 8, 2015

Thursday's Finalists

Wednesday's markets produced a poor crop of prospects. The three symbols that survived initial screening -- AUXL, WRI and OC, all with bull signals -- had volumes of below a million shares a day, on average. That's acceptable for share trading, but too illiquid for most options trading. (See "Thursday's Prospects".)

The lower share liquidity on the three resulted in low open interest on the options. In addition, WRI's momentum reversed toward the downside; it confirmed the bull signal but weakly.

I don't intend to do further analysis on any of those, nor, indeed, on any symbols based on signals from Wednesday's trading.

I did analyze the one symbol on the verge of publishing earnings with sufficient liquidity to meet my criteria. Read it at "BBBY: Volatility play".

-- Tim Bovee, Portland, Oregon, Jan. 8, 2015

References

My shorter-term trading rules can be read here. My longer-term trading rules can be read here. And the classic Turtle Trading rules on which my rules are based can be read here. My volatility trading rules 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 decisions for his or her own account, and take responsibility for the consequences.