Tuesday, May 31, 2016

Tuesday's Agenda

I'm looking at two prospects today: An earnings play on KORS and a non-event volatility play on GDXJ. GDXJ was selected under a change to my screening process, which I described in a post on Monday.

KORS fails to meet my liquidity criterion because open interest on its options are overly low on key strike prices for calls. I require 100 contracts or higher for the open interest. The call strikes I would need are in the double digits.

So I'm laying KORS aside and turning to GDXJ, an exchange-traded fund with high implied volatility relative to its range. However, GDXJ also fails on open interest.

Two prospects -- two fails. I don't intend to do further analysis on those symbols and don't anticipate opening new positions today.

-- Tim Bovee, Portland, Oregon, May 31, 2016

The Rise and Fall of American Growth: The U.S. Standard of Living since the Civil War
by Robert J. Gordon


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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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.

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