Of 504 large-cap stocks and exchange-traded funds in my analytical universe, none meet my criteria for further consideration.
There are no prospects for trades coinciding with earnings announcements.
Lacking prospects, I shall do no further analysis on Thursday, July 21.
The next earnings season began on July 11 and will last for six weeks, through Aug. 19.
by Thomas Picketty |
Assessment
Six earnings prospects qualify for further analysis in all respects except the level of implied volatility. I require volatility be in the 50th percentile or greater of its 12-month range. The six are all below their 24th percentile. In the unlikely event volatility should increase to the 50th percentile in any during trading on Thursday, I shall move forward with additional analysis.
The six symbols:
| action | sym | earns date | am/mid/pm | IV percentile | |
| 7/21 | PYPL | 7/21 | pm | 19.28 | |
| 7/21 | SBUX | 7/21 | pm | 23.77 | |
| 7/21 | SLB | 7/21 | pm | 4.8 | |
| 7/21 | T | 7/21 | pm | 9.14 | |
| 7/21 | V | 7/21 | pm | 18.23 | |
| 7/21 | GE | 7/22 | am | 3.12 |
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, July 20, 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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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
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