Monday, June 6, 2016

Tuesday's Prospects

On Monday, June 6:

Of 468 large-cap stocks and exchange-traded funds in my analytical universe, one meets my criteria for further consideration.

There are no prospects for trades coinciding with earnings announcements.

I shall do further analysis on Tuesday, June 7.

The next earnings season will begin on July 11 and last for six weeks, through Aug. 19.


Valuation: Measuring and Managing the Value of Companies, 6th ed.
by McKinsey & Company Inc.


Symbols meeting or close to meeting implied volatility criteria

IV qualifies
GDXJ

IV near-
qualifying
(none)

Qualifies,
In portfolio
(none)

Assessment

GDXJ qualifies both in terms of the most recent range (57th percentile) and the annual range (61st percentile. If those qualities and the present sufficient liquidity continue into trading on Tuesday, then I anticipate doing a full analysis and potentially a trade.

Methodology

The stocks in my analytical universe all have analyst coverage through the stock-ranking company Zacks Investment Research. Not all of the exchange-traded funds are so covered.

I screen for 1) suitability of the options grid, including open interest of three figures or greater on the strike prices I would need to use to build a position and 2) the absence of an earnings announcement within the lifespan of the like options series I would trade, 3) implied volatility in the 50th percentile or greater of its annual range, 4) average volume of 3 million shares a day or greater, and 5) a price of $30 or greater.

-- Tim Bovee, Portland, Oregon, June 6, 2016

References

Tradecraft: Playing the odds to build winning stock market trades from options, a description of how I trade, can be read here.

I can be reached via comments on Private Trader posts or by email at datnillc@gmail.com.

Alerts

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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 decision decisions for his or her own account, and take responsibility for the consequences.
License

Creative Commons License

All content on Tim Bovee, Private Trader by Timothy K. Bovee is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Based on a work at www.timbovee.com.Tss s ss'ss

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