Friday, November 28, 2014

Friday's Finalists: ESV, EXR, KIM

Three made it to the final rounds of analysis, out of six that survived the initial screening. (See "Friday's Prospects".)

The London-based offshore drilling services company Ensco plc (ENV), having given a bear signal, is the last symbol standing. The other two among the final three -- EXR and KIM -- had a poor distribution of open interest that made them unsuitable for a hedged and leveraged trade.

The three who didn't make the finals, including super-story-stock FB, all lacked charts strong enough to support a trade int he direction of the signal.

ENV has the added advantage of a high implied volatility, meaning I can structure the position as a short options spread expiring Dec. 19, for a quick round trip in and out of the position.

I'll post a full analysis prior to the market close today.

It is the Friday after Thanksgiving in the United States, and the equities markets close at 1 p.m. New York time, three hours earlier than usual.

-- Tim Bovee, Portland, Oregon, Nov. 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.

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