The symbols:
| action | sym | earns date | am/mid/pm | IV percentile |
| 7/26 | AAPL | 7/26 | pm | 10.7 |
| 7/27 | FB | 7/27 | pm | 37.6 |
I require a share price of $20 or higher and average volume of 3 million share per day or higher.
When I look at the more rapidly changing characteristics during the trading session prior to earnings --- on action day -- I shall also require that implied volatility be in the 50th percentile or higher of its annual range.
Neither has sufficiently high volatility today to qualify for further analysis and possibly a trade. That could change, however.
-- Tim Bovee, Portland, Oregon, July 21 , 2016
by Sheldon Natenberg |
References
Tradecraft: Playing the odds to build winning stock market trades from options, a description of how I trade, can be read here.
I can be reached via comments on Private Trader posts or by email at datnillc@gmail.com.
Alerts
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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 decision decisions for his or her own account, and take responsibility for the consequences.License
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