Of the five early-analysis survivors under consideration today, two -- LCI and HR -- failed because of insufficiently robust open interest to support a trade.
None of the remaining three -- SLV, JCI and AEP -- is clearly in a trend. Each carries an argument that the signal is part of a counter-trend movement.
SLV has three things going for it: 1) It is the most liquid of th three, 2) it is the only one to have a directional rating from Zacks (bullish), and 3) as the central bank ponders further changes in money policy strategy, metals are a supremely fascinating market.
I'll post an analysis of SLV at some point today, although I may be running late because of a scheduling conflict.
Both of the two prospective earnings plays, LULU and CIEN, lack liquid Weeklys in their options inventories. I'm passing on both and plan no volatility plays today.
-- Tim Bovee, Portland, Oregon, Dec. 10, 2014
References
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 volatility trading rules can be read here.
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.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.
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