Wednesday's Prospects

Screening of the Tuesday, Sept. 6 markets identified 15 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
price channel	N/A	1
earnings	0	1
volatility	2	N/A
stochastic-rsi	N/A	8

I shall make final trading decisions on Wednesday, Sept. 7.

Phishing for Phools: The Economics of Manipulation and Deception by George A. Akerlof and Robert J. Shiller

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


Options: High IV

MON

KR

Shares:Earnings

Wednesday pm (none)

Thursday am EGAN

Shares: Ptice Channel

TSM

Shares: Stochastic-RSI

RTK

MIFI

MZOR

QEP

UGP

JHX

MNK

BID

Notes

The next earnings season begin in mid-October.

PG is within reach of meeting my requirements for a high implied volatility options play.

I added Beta, a measure of volatility, to the Stochastic-RSI analysis. I am now requiring Beta of greater than 1.0, which is greater than the market as a whole.

I shall pick no more than two symbols on the Stochastic-RSI list for trades.

-- Tim Bovee, Portland, Oregon, Sept. 6, 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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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.