I exited my volatility play in AAPL just a few cents shy of maximum profit. See "AAPL, YHOO: Volatility plays" for the results.
I exited in-the-money positions composed of Weeklys expiring on Saturday, all of them volatility plays keyed to earnings announcements. I've updated these analyses with results:
I began a "lessons learned" process on Monday, with the goal of lessening the chance of a repetition of the week's string of loosing volatility plays.
"What's the direction?" on Monday framed the question and outlined a possible solution.
I applied a modification the proposed solution in my post-mortem on Tuesday of the CREE loss in "CREE, IBM, NFLX, USB: Volatility plays".
The References section at the bottom the "BABA: Volatility play" outlines direction-picking process that I've developed and intend to use going forward, no doubt with modifications to come. The BABA analysis was the first use of the process, which produces a "directional score" to guide my trade.
These changes will eventually migrate over to my former rules, but the method is still in the development stage, so I'll keep it informal for now.
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.
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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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