MSFT Analysis

The software/hardware company Microsoft Corp. (MSFT),  headquartered in Redmond, Washington, publishes earnings on Thursday after the closing bell.

[MSFT in Wikipedia]

MSFT

I shall use the DEC series of options, which trades for the last time 57 days hence, on Dec. 18.

Ranges

Implied volatility stands at 28%, which is 1.8 times the VIX, a measure of volatility of the S&P 500 index. MSFT’s volatility stands in the 48th percentile of its annual range.

At this point I move directly to a decision.

Decision for My Account

Implied volatility was in the 51st percentile of the one-year range when I made the decision to analyze MSFT this morning. It has since dropped, and the symbol no longer meets my preferences. I shall pass on a trade and plan no further analysis of MSFT.

-- Tim Bovee, Portland, Oregon, Oct. 22, 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 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.