Tuesday, September 15, 2015

FDX Analysis

The delivery service FedEx Corp. (FDX), headquartered in Memphis, Tennessee, publishes earnings before the opening bell on Wednesday.

[FDX in Wikipedia]

I shall use the OCT series of options, which trades for the last time 32 days hence, on Oct 16.


Click on chart to enlarge.
FDX at 10:43 a.m. New York time, 180 days 4-hour bars
Implied volatility stands at 30.8%, which is 1.4 times the VIX, a measure of volatility of the S&P 500 index. FDX’s volatility stands in the 48th percentile of its annual range.

Implied volatility was above the 50th percentile when I did my pre-analysis on Monday. However, it slipped in Tuesday's trading and no longer meets my standard. The 50th percentile is the cut-off point.

I can now cut short the analysis and go straight to a decision.

Decision for My Account

I am declining to trade FDX in connection with Wednesday's earnings announcement because of overly low implied volatility.

-- Tim Bovee, Portland, Oregon, Sept. 15, 2015


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 www.timbovee.com.

No comments:

Post a Comment