Tuesday's Prospects

The U.S. markets are closed on Monday for the Labor Day holiday.

Screening of the Friday, Sept. 2 markets identified 16 prospective trades out of the two datasets and four strategies that I'm using.

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 77 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	7
earnings	0	1
volatility	0	N/A
stochastic-rsi	N/A	8

I shall make final trading decisions on Tuesday, Sept. 6.

The Art of Risk: The New Science of Courage, Caution, and Chance by Kayt Sukei

Below are the candidates for analysis for each cell of the quadrant.


Options: High IV

(none)

Shares:Earnings

Tuesday pm (none)

Wednesday am FRAN

Shares: Signals

ATVI

BABY

BR

DST

ICFI

MKSI

SIR

Shares: Stochastic-RSI

AHC

CLNE

JCAP

MZOR

PLOW

PVH

RACE

RMR

Notes

The next earnings season begin in mid-October.

If NLY reaches implied volatility at or greater than 50% of its annual range, the stock will qualify for further analysis as a high IV trade using options. It presently stands at the 47th percentile.

The signals prospects will b screened further using the Stochastic-RSI on trading day.

For the Stochastic-RSI screening, I am now using the Ichimoku Cloud momentum analysis. I require that the boundaries of the cloud both be in uptrends in the projection forward, with uptrend defined as three waves up with declines in the most recent trading days being excluded. The prospects will be screened further using the Stochastic-RSI on trading day.

-- Tim Bovee, Portland, Oregon, Sept. 3, 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.