All three meet my requirements for options liquidity, having sufficiently high open interest on strike prices important to building a trade.
Additionally, HOG and IBM have implied volatility that meets my standard: The 60th percentile or higher of the most recent range.
NFLX, however, falls short, with implied volatility standing in the 20th percentile of its most recent range and in the 46th percentile for the past 12 months.
I shall post analyses of HOG and IBM rtoday but shall reject NFLX without further analysis.
-- Tim Bovee, Portland, Oregon, April 18, 2016
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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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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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