[FDX in Wikipedia]FDX
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 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.
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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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