For options trading I review the approximately 500 symbols in my large-cap stocks and exchange-traded funds, and for share trading, I review approximately 950 symbols of stocks and funds of all capitalizations. For both I reviewed the companies publishing earnings, a number that varies wildly.
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 charts signaled by the stochastic-relative strength index indicator, and in anticipation of events ( such as earnings announcements).
| options | shares | |
|---|---|---|
| signals | N/A | 0 |
| earnings | 0 | 1 |
| volatility | 0 | N/A |
| stochastic-rsi | N/A | 10 |
by Michael Roberts |
Below are the candidates for analysis for each cell of the quadrant.
Shares: Earnings
|
|
| PCLN |
| TSLX |
| STWD |
| ZBRA |
| ORA |
| PLXS |
| ENTG |
| STZ |
| UTEK |
| MTX |
Notes
The next earnings season begin in mid-October.
I'll select trades of the Stochastic-RSI group from the 10 prospects listed.
In selecting Stochastic-RSI trades, I've tightened up my standards to require a uptrend on the one-year chart, while continuing to look at symbols whose Stoch-RSI's are between 18 and 24. The final decision on whether the Stoch-RSI meets my standards will be made on the trading day.
-- Tim Bovee, Portland, Oregon, Aug. 27, 2016
References
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 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
All content on Tim Bovee, Private Trader by Timothy K. Bovee is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Based on a work at www.timbovee.com.
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