For that reason, I'm passing on GE, STI and CMA without further analysis. My trading model for earnings events relies on a fall in implied volatility after the announcements. The premature fall in these three symbols -- volatility stands well below the 50th percentile in each -- makes them unworkable under my guidelines.
That leaves two potential trades -- SLB and GOOGL -- with sufficiently high implied volatility, and I shall post full analyses today.
-- Tim Bovee, Portland, Oregon, July 16, 2015References
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.
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