Tim Bovee, Private Trader: Wednesday's Agenda

Wednesday, May 18, 2016

Wednesday's Agenda

Three of four prospects on my desk this morning continue to show overly low implied volatility, although one of them, DLTR, is close enough to meeting my standards that it might qualify during trading today.

One, WMT, meets my standard, and I shall post a full analysis today.

I measure implied volatility as a percentile of its most recent range. I require that it be in the 60th percentile or higher.

A chart of today's prospects and their implied volatility percentiles:

sym	range %ile
CRM	37
DLTR	52
WMT	72
WFC	17

-- Tim Bovee, Portland, Oregon, May 18, 2016

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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.

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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.