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 | 0 |
| volatility | 0 | N/A |
| stochastic-rsi | N/A | 0 |
I shall make final trading decisions on Wednesday, Oct. 12.
by Edwin Lefevre |
Below are the candidates for analysis for each cell of the quadrant.
Shares: Price Channel
| LWAY |
Notes
The current earnings season began on Oct. 11 with AA's release of earnings and will continue for six weeks.
The one earnings prospect, DAL, with sufficient liquidity for an options play has implied volatility that is well below the midpoint of the one-year range. Unless it hits or betters the 50th percentile mark, it won't qualify for a trade.
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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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.
The current earnings season began on Oct. 11 with AA's release of earnings and will continue for six weeks.
The one earnings prospect, DAL, with sufficient liquidity for an options play has implied volatility that is well below the midpoint of the one-year range. Unless it hits or betters the 50th percentile mark, it won't qualify for a trade.
-- Tim Bovee, Portland, Oregon, Oct. 11, 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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