This week, for options trading, I reviewed nearly 500 symbols in my large-cap stocks and exchange-traded funds, and for share trading, I reviewed nearly 1,000 symbols of stocks and funds of all capitalizations. For both I reviewed more than 1,400 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 charts signaled by the stochastic-relative strength index indicator, and in anticipation of events ( such as earnings announcements).
| options | shares | |
|---|---|---|
| signals | N/A | 3 |
| earnings | 1 | 0 |
| volatility | 1 | N/A |
| stochastic-rsi | N/A | 13 |
I shall make final trading decisions on Wednesday, Aug. 31.
by Edwin Lefevre |
Below are the candidates for analysis for each cell of the quadrant.
Options: Earnings
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".
|
|
Options: High IV
| KR |
| CFFN |
| GWB |
| NP |
Shares: Stochastic-RSI
| EME |
| LDR |
| PE |
| CRY |
| BMA |
| SREV |
| BID |
| WTS |
Shares: Stochastic-RSI-ETFs
| IWM |
| JNK |
| EPI |
| BKLN |
| HYG |
The next earnings season begin in mid-October.
With implied volatility in the 30th percentile of its annual range, CRM is unlikely to qualify as an options play coinciding wih an earnings announcement.
KR, with implied volatility in the 49th percentile of its annual range, is within reach of qualifying as an options volatility play.
I've added exchange-traded funds to my Stochastic-RSI screening for small-lots shares trades.
-- Tim Bovee, Portland, Oregon, Aug. 30, 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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