Thursday, May 7, 2015

Thursday's Agenda

All three symbols that are today's prospects confirmed their signals by continuing to trade beyond their 20-day price channels.

However, ALXN and ANTM showed a strong loss of momentum intraday that leaves me reluctant to pursue them further.

GG continued on its downward course and is a candidate for a directional play, but two properties render it unsuitable for the kind of trades I'm doing these days: Short options spreads, sold for a credit and last under two weeks.

Implied volatility on GG is low relative to its own history. It stands in the 42nd percentile of its most recent rise.

The benchmark bid/ask spread on options is in the double digits, which is too wide for my taste.

GG might make a perfectly good trade, but it's not for me, and I shall not analyze it further today.

One potential earnings play is on the table -- JD -- and I shall post an analysis prior to the closing bell.

-- Tim Bovee, Portland, Oregon, May 7, 2015


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 decision decisions for his or her own account, and take responsibility for the consequences.

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