I have one -- possibly two -- prospects on my desk this morning: MKC and QIHU. Both have implied volatility around the 30th percentile of their most recent ranges. For trading, I require that volatility be at the 60th percentile or higher.
So I plan no further analysis today and don't anticipate entering any new positions today.
There are some anomalies regarding when QIHU will publish earnings. Some sources say today after the closing bell, others say Tuesday at an unspecified time of day. In any case, implied volatility is unlikely to rise to an acceptable level, so the date makes no difference for my practical trading.
-- Tim Bovee, Portland, Oregon, March 28, 2016
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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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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