Thursday's Agenda

None of the six prospects on my desk this morning has sufficiently high implied volatility to meet my standards for a full analysis and possibly a trade. I measure the level as a percentile of the most recent range and require that volatility be in the 60th percentile or higher.

Indeed, one symbol, MDVN, has fallen below any reasonable interpretation of the prior range, yielding a negative percentile, something I haven't often seen.

None of the six is near enough to qualifying to be worth checking during the day, so although I shall, in the rather obsessive manner of most traders, check, I anticipate no full analyses and no new positions today.

A chart of the prospects and their implied volatility percentiles.

sym	range %ile
MDVN	-12
NVDA	36
CELG	22
GE	2
LUV	38
ORCL	19

-- Tim Bovee, Portland, Oregon, May 5, 2016

How to Make a Living Trading Foreign Exchange by Courtney Smith

References

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


Elliott wave analysis tracks patterns in price movements. StockCharts has a good explainer. The principal practioner of Elliott wave analysis is Robert Prechter at Elliott Wave International. His book, Elliott Wave Principle, is a must-read for people interested in this form of analysis, as is his most recent publication, Visual Guide to Elliott Wave Trading. 

I can be reached via comments on Private Trader posts or by email at datnillc@gmail.com.

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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.

License



All content on Tim Bovee, Private Trader by Timothy K. Bovee is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Based on a work at www.timbovee.com.