Monday's Agenda

Seven symbols are on my desk this morning as prospective trades coinciding with earnings announcements. I'm looking at too others that gave trading signals in Friday's trading. All nine wanting in some respect that disqualifies them from trading under my guidelines.

Two -- COH and RAI -- have implied volatility sufficiently high to support a trade, at the 60th percentile or higher of the most recent range.

However, those two and the other five potential earnings plays -- BAX, ESRX, LLY, NXPI and PG --all have open interest that is too small at key strike prices that I would use in building a trade.

The two that gave trading signals -- DISH and SCHW -- have extremely low implied volatility relative to their recent ranges and so are disqualified from trading. Their open interest, however, is ust fine.

So for today, everyone fails, and I am left without anything to analyze. I intend to open no new positions today.

-- Tim Bovee, Portland, Oregon, April 25, 2016

Price Action Breakdown by Laurentiu Damir

References

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


Elliott wave analysis tracks patterns in price movements. StockCharts has a good explainer. The principal practioner of Elliott wave analysis is Robert Prechter at Elliott Wave International. His book, Elliott Wave Principle, is a must-read for people interested in this form of analysis, as is his most recent publication, Visual Guide to Elliott Wave Trading. 

I can be reached via comments on Private Trader posts or by email at datnillc@gmail.com.

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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.