Saturday, July 30, 2016

Monday's Prospects

I've identified 10 prospective trades out of the two datasets and four strategies that I'm using.

This week, for options trading, I reviewed 474 symbols in my large-cap stocks and exchange-traded funds, and for share trading, I reviewed 953 symbols of stocks and funds of all capitalizations. For both I reviewed 1,412 companies publishing earnings.

I use four strategies in my trading, in response to trading signals (such as breakouts above the 20-day price channel), high implied options volatility, and persistently rising trends on a chart, and in anticipation of events ( such as earnings announcements).

Initial screening of options is governed by my volatility guidelines: Price of $20 or greater, average volume of 3 million shares a day or greater, and implied volatility at the 50th percentile or greater of the one-year range.

Initial screening of shares is governed by my small-lots guidelines: The trade must be bullish with a bullish profile from Zacks Investment Research and must be listed on the commission-free brokerage Robinhood Financial.

Here's table below showing the association between the datasets and strategy and the number of symbols passing initial screening on Friday, July 20.

 options  shares 
trends (beta)N/A1

I shall make final trading decisions after further analysis on Monday, Aug. 1.

For the Love of Money: A Memoir
by Sam Polk

Below are the candidates for analysis for each cell of the quadrant.

Options: 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".

Monday pm
Tuesday am

Options: Volatility


Shares: Signals



Monday pm
Tuesday am

Options: Trends



The current earnings season began on July 11 and will last through Aug. 19.

-- Tim Bovee, Portland, Oregon, July 30, 2016


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

Small Lots: A new strategy discusses the thinking behind the analysis that identified these trades and can be read here. The symbols noted in this post are intended fortrading on a commission-free platform such as Robinhood Financial.

I can be reached via comments on Private Trader posts or by email at


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

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