I calculated IV as a percentile of its most recent rise. I require the 60th percentile or higher. BIIB was at the 55th percentile, clearly within reach if it moved higher.
It went the other way. An hour into the trading day, BIIB it doesn't qualify for further analysis.
The other two prospects, BA and MA, remain well below the qualifying level.
A chart of symbols and their IV percentiles:
BA and MA are to far from qualifying to have any hope, and I'm setting them aside. BIIB could well reverse. I'll check it during the day and if the IV percentile moves to the 60th percentile or higher, then I'll start the analysis.
-- Tim Bovee, Portland, Oregon, May 20, 2016
by Robert B. Reich
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.
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