However, the bull signal -- FANG -- is moving counter-trend intraday and has a double-digit-percentage bid/ask spread on the front-month at-the-money calls.
The bull signal -- SDLP -- has very low open interest, in the double digits, and the huge bid/ask spread that is common among thinly traded options.
Neither meets my needs, and I won't be opening any new positions based on Wednesday's markets.
Earlier this morning I analyzed the two symbols that I considered for volatility plays keyed to earnings announcements. Both INTC and SLB passed my tests, and I've opened positions in both. See the analysis here.
-- Tim Bovee, Portland, Oregon, Jan. 15, 2015
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.
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 decisions for his or her own account, and take responsibility for the consequences.License
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Based on a work at www.timbovee.com.
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