Thursday's Agenda

I have three options prospects on my desk today that are potential trades because of sufficiently high implied volatility.

I'm passing on MON, which is involved involved in a take-over offer by Bayer. Buy on the cannon, sell on the bugles is the old rule for traders. The stock price has already responded to the Bayer offer, so there is nothing but risk with very little to gain at this point.

SO appeared on the Prospects post last night, but it's implied volatility has fallen and it no longer qualifies for further analysis.

The third symbol is SYF. Although I rejected it a few days ago (the earlier analysis is here), I'll take another look today. Conditions change quickly in the markets and perhaps it will work out today.

Two symbol gave trading signals that qualify them for my small-lot shares strategy. I shall open positions on ITUB and KTOV.

By Tim Bovee, Portland, Oregon, Aug. 4, 2016

Progress and Confusion: The State of Macroeconomic Policy by Olivier Blanchard et al.

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.

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Disclaimer

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.