Tim Bovee, Private Trader: Tuesday's Agenda

Tuesday, April 26, 2016

Tuesday's Agenda

All 13 of the prospective earnings plays waiting a trading decision this morning have implied volatility that is too low to meet my guidelines.

I calculate volatility level relative to its most recent range, requiring that it be in the 60th percentile or greater to qualify for trading.

Here's the chart:

sym	range %ile
AAPL	33
ADT	14
BA	45
BEN	16
BHI	32
CMCSA	5
EXC	10
MDLZ	13
SO	36
T	35
TMUS	0
UTX	21
WYNN	37

None appear to be close enough to my minimum so as to have a reasonable chance of rising to that level during the trading day.

I shall do no further analysis today and plan to open no new positions.

-- Tim Bovee, Portland, Oregon, April 26, 2016

Elliott Wave Principle
by Robert Prechter

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.