This week, for options trading, I reviewed 480 symbols in my large-cap stocks and exchange-traded funds, and for share trading, I reviewed 960 symbols of stocks and funds of all capitalizations. For both I reviewed 776 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).
The table below shows the association between the datasets and strategy and the number of symbols passing initial screening on Friday, Aug. 5.
I shall make final trading decisions on Monday, Aug. 8.
by Thomas N. Bulkowski
Below are the candidates for analysis for each cell of the quadrant.
Options: High IV
The current earnings season began on July 11 and will last through Aug. 19.
Four symbols are within five percentile of having high enough implied volatility to qualify for further analysis. They are COH, M, SYF and SYY. I already hold a position on SYF.
RSPP publishes earnings on Monday and also broke above its 20-day price channel, giving a bullish trading signal in anticipation of its earnings announcement.
-- Tim Bovee, Portland, Oregon, Aug. 5, 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 email@example.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.License
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