Wednesday, January 21, 2015

Wednesday's Finalists

Two symbols made it past the first round of analysis, a bull signal from FDX and a bear signal from CSIQ. (See "Wednesday's Prospects".) FDX also appears on my list of innovative companies.

Both symbols confirmed their signals. CSIQ, however, is moving counter-trend with an intra-day rise. FDX is trading higher, in sync with its signal.

Both have sufficiently liquid options to construct an options spread.

The problem is the fact that both symbols have relatively low implied volatility. We're in the midst of earnings season, and I have no interest in tying up funds for the longer periods required by strategies appropriate to low volatility.

If we were closer to the end of earnings season, then maybe. But not at this point, just a week plus change since the season started. Trades timed to coincide with earnings announcements have been quite profitable, and that will remain my priority until near the end of February.

FDX, as one of my innovators, would be a candidate for a very long term trade built out of shares, but it has been well above its 200-day moving average since June 2013, which means that particular train pulled out of the station long ago. I'll wait for a dip below the MA and then a recross above before considering that strategy.

I've opened a bear position on the one symbol that is a candidate this morning for a volatility play keyed to earnings. The symbol is LUV, I've made the trade, and the analysis can be read here.

-- Tim Bovee, Portland, Oregon, Jan. 21, 2015


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.


Two social media feeds provide notification whenever something new is posted.
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

No comments:

Post a Comment