Tim Bovee, Private Trader: Monday's Agenda

Monday, May 16, 2016

Monday's Agenda

Today's five prospects have implied volatility far below the minimum I require for my strategy of short-selling option spreads.

I want volatility to be at the 60th percentile or higher of its most recent range. The highest among the five is at the 35th percentile.

The symbols and their IV percentiles:

sym	range %ile
HD	35
BBT	17
DOW	5
EMN	8
GS	27

None appears likely to rise sufficiently before the closing bell to support the trade, so I anticipate doing no further analysis and opening no new positions today.

-- Tim Bovee, Portland, Oregon, May 16, 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.

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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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.