Tuesday, July 12, 2016

Wednesday's Prospects

On Tuesday, July 12:

Of 490 large-cap stocks and exchange-traded funds in my analytical universe, two meet my criteria for further consideration. I already hold positions in one of them.

There are no prospects for trades coinciding with earnings announcements.

I shall do further analysis on Thursday, July 13.

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

Symbols meeting or close to meeting implied volatility criteria

IV qualifies


In portfolio


I'm unlikely to do a full analysis and trade on GDXJ, which tracks smaller gold mining outfits, since I already hold GDX, which tracks larger gold miners.

Two companies publishing earnings, INTC and JPM, qualify except for low implied volatility, at the 30th and 21st percentile, respectively, of the one-year range. I'll pursue further analysis if either reaches the 50th percentile or greater on Wednesday; otherwise, they're out of play.


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 12, 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 datnillc@gmail.com.


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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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