COST is closest to having sufficiently high IV, calculated as a percentile of its most recent range. My minimum requirement is the 60th percentile or higher.
A table of the prospects and their implied volatility percentiles. Note that four have IV percentiles in negative territory, meaning that volatility has dropped below the beginning of the most recent rise.
COST's implied volatility now stands at 23.91%. It would qualify for analysis if it were to reach 25.02%. I shall check it during the day and do an analysis if it reaches that level. I am striking the other symbols from the prospects list. They have no realistic chance of attaining the 60th percentile.
-- Tim Bovee, Portland, Oregon, May 24, 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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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.License
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