Tuesday's Prospects

I've identified five prospective trades out of the two datasets and four strategies that I'm using.

This week, for options trading, I reviewed 474 symbols in my large-cap stocks and exchange-traded funds, and for share trading, I reviewed 953 symbols of stocks and funds of all capitalizations. For both I reviewed 1,412 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).

Here's a table showing the number of symbols under consideration for the datasets and associated strategies, based on screening of the markets of Monday, Aug. 8.

	options	shares
signals	N/A	1
events	2	2
volatility	0	N/A
trends	N/A	0

I shall make final trading decisions on Tuesday, Aug. 9.

Illusions of Wealth: Actively Manage Your Investments or Expect Losses in this Volatile Economy by Doug Eberhardt

Below are the candidates for analysis for each strategy and dataset.


Options: Events

The dates are those of the events, all of them earns announcements. Events prior to the opening bell are marked "am", during the trading day "mid", and after the closing bell "pm".

Tuesday pm DIS

Wednesday am JD

Options: High IV

(none)

Shares: Signals

SN

Shares:Events

Tuesday pm RYI

Wednesday am AXAS

Shares: Trending

(none)

Notes

The current earnings season began on July 11 and will last through Aug. 19.

DIS and JD both have low implied volatility and are unlikely to qualify on Tuesday for further analysis.

SN gave its bull signal in response to an earnings announcement. It will qualify for a trade if the trend continues upward on Tuesday.

RYI and AXAS are almost certain to qualify for a small-lots trade.

-- Tim Bovee, Portland, Oregon, Aug. 8, 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.

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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.