Tuesday, October 28, 2014

Tuesday's Finalists: PAY, FDX

Both symbols that made it past my initial round of screening have confirmed their bull signals today by trading above their 20-day price channels.

The symbols are the California secure electronic payment company VeriFone System Inc. (PAY) and the Tennessee-based global delivery company FedEx Corp. (FDX).

FDX has a breakout chart, meaning the price has pierced near-term resistance. PAY, although in a near-term uptrend, remains below resistance and so might be in a counter-trend correction.

The companies are comparable in their liquidity, with volume running a bit above 2 million shares a day for each.

The options have comparable, three-figure open interest. They differ, however, in their bid/ask spreads. PAY's front-month at-the-money bid/ask spread is 16%, which breaks my single-digit-spread preference. FDX's is 5%, within my acceptable range.

I'll post an analysis of FDX prior to today's closing bell.

-- Tim Bovee, Portland, Oregon, Oct. 28, 2014


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 very short term volatility trading rules can be read here

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.

Creative Commons 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.

No comments:

Post a Comment