Wednesday's Prospects

CORRECTION: I've removed ORCL from Wednesday's action list. It is actionable on Thursday, June 16.

On Tuesday, June 14:

Of 482 large-cap stocks and exchange-traded funds in my analytical universe, three meet my criteria for further consideration. I already hold positions in one of them. The other two are on the calendar for deferred consideration.

There are three two prospects for trades coinciding with earnings announcements.

I shall do further analysis on Wednesday, June 15.

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

Risk-Return Analysis: The Theory and Practice of Rational Investing (Volume One) by Harry R. Markowitzh et al.

Risk-Return Analysis: The Theory and Practice of Rational Investing (Volume Two) by Harry R. Markowitzh et al.

Symbols meeting or close to meeting implied volatility criteria

IV qualifies EFA EWG

Qualifies, In portfolio GDXJ

Potential trades keyed to events

The dates are those of the events, all of them earns announcements. Events prior to the opening bell are marked "am", during the trading day "mid", and after the closing bell "pm".

Wednesday pm CTRP

Thursday am KR ORCL

Assessment

I have put EFA and EWG on the calendar for consideration on June 22 in connection with the European Union exit vote in the United Kingdom. They won't be considered on Wednesday.

CTRP's options grid may not have sufficient liquidity to support a trade. I'll discuss my final decision in Agenda post after the opening bell on Wednesday.

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 $20 or greater.

-- Tim Bovee, Portland, Oregon, June 14, 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



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