Monday's Agenda

Earnings season enters its peak period this week, and today's analysis is complicated by a scheduling conflict that requires me to squeeze together two days' worth of potential trades. ("Monday's Prospects addendum")

Of the Monday trades: I'll analyze FAST, but JNJ's implied volatility has declined to the 40th percentile of its annual range, disqualifying it from further consideration.

Of Tuesday's trades, I'll analyze LVS, INTC, CSX and WFC, but two symbols have overly low implied volatility and are disqualified from further analuysis: JPM in the 34th percentile and DAL in the 14th percentile.

Implied volatility is important for my strategy because I rely on a collapse in volatility for a portion of the profit. Stocks with already low implied volatility are unlikely to decline as much after an earnings announcement.

-- Tim Bovee, Portland, Oregon, Oct. 12, 2015

References

Tradecraft: Playing the odds to build winning stock market trades from options, a description of how I trade, can be read here.

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Disclaimer

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



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.