Monday, July 18, 2016

Tuesday's Prospects

On Monday, July 18:

Of 504 large-cap stocks and exchange-traded funds in my analytical universe, three meet my criteria for further consideration. I already hold positions in all of them.

There are no prospects for trades coinciding with earnings announcements.

Lacking prospects, I shall do no further analysis on Tuesday, July 19, unless the characteristics of some near calls change.

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

The Breaking Point: Preparing for the Coming Global Shift
by James Dale Davidson

Symbols meeting or close to meeting implied volatility criteria

IV qualifies


In portfolio

One high implied volatility symbol, DKJ, is close to qualifying for a further look, with volatility in the 46th percentile of its annual range. I'll consider it further on Tuesday if volatility rises to the 50th percentile or higher.

There are six potential earnings plays that qualify in everything except the level of implied volatility. (See Earns Prospects 7/18-22.) The one closest to qualifying is UAL, with implied volatility in the 41st percentile. I shall consider it further if volatility reaches the 50th percentile.


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 18, 2016


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


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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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