Tim Bovee, Private Trader: Wednesday's Agenda

Wednesday, April 27, 2016

Wednesday's Agenda

None of the 13 prospects on my desk this morning has improved to the point where I can trade them, although one -- FB -- is coming close.

All are faltering on the level of implied volatility. My guidelines require that volatility be in the 60th percentile or higher of its most recent range.

FB is within six percentile of the goal. I shall keep an eye on the symbol's IV during the day and if it does hit 60, I'll do an analysis.

The others are so far away that I'm rejecting them now without a full analysis. Here are the 13 prospects and their current implied volatility percentiles.

sym	range %ile
ABBV	14
BMY	5
CELG	20
CME	4
COP	14
DOW	20
FB	54
MA	27
MAR	0
MO	9
MPC	20
TXN	33
VIAB	39

-- Tim Bovee, Portland, Oregon, April 27, 2016

Options as a Strategic Investment
by Lawrence G. McMillan

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.