Of the three survivors from "Tuesday's Prospects" -- POST and LB from the regular run and SJM from my list of innovative companies, all bull signals -- only LB has a bullish chart. LB's options, however, have wide bid/ask spreads, 15% on the front-month at-the-money calls. I'm not interested in a non-leveraged trade at this point, so LB also falls by the wayside.
YHOO publishes earnings after the closing bell, and so is a candidate for a trade under my volatility rules.
However, its implied volatility is only in the 50th percentile of its one-year range. I need high implied volatility for this strategy. It's not in the rules, but my strong preference is for the 75th percentile or higher.
So, no analyses planned today, and no trades based on Monday's markets.
-- Tim Bovee, Portland, Oregon, Oct. 21, 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.License
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