TWTR's implied volatility headed south, from 79% to 62%, the trading day before earnings were published. That movement brought IV down to the 27th percentile of its one year range, well below my minimum requirement of the 50th percentile, disqualifying TWTR from further analysis.
I shall enter no new positions today.
By Tim Bovee, Portland, Oregon, Oct. 27, 2016
by Mitch Zacks
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 for trading on a commission-free platform such as Robinhood Financial. See my initial post on the strategy here.
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