The high number of potentials presents two problems: First, the time it takes to complete the analysis and make the trade, and second the need to manage funds so that I have time diversification, that 'm not tying up to much money on this single day.
So in assessing trades today, I shall show no mercy. I'm removing four symbols from the list without further analysis.
Implied volatility on QCOM and LLY has declined below the 70th percentile of the most recent rise, and so they no longer meet my requirements.
PHM's price has dropped below $30 and so is too low for my taste.
The one possible trade not coinciding with an earnings announcement, ORCL, has failed confirmation after sending a bear signal with low odds of success. With a low odds bear signal, confirmation means that the price moves back up into the 20-day price channel. ORCL has continued to trade lower and so has failed the test.
That leaves six potential trades -- GM, MCD, LUV, DOW, SNDK and CAM -- and I shall be posting an analysis on each today.
-- Tim Bovee, Portland, Oregon, July 22, 2015
ReferencesMy 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.License
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