Live: Thursday, April 6, 2017

4/6 – 3:25 p.m. New York time

And the day ends with no trades.

4/6 – 10:35 a.m. New York time

I have no prospects for trading on Thursday.

4/5 – 8:50 p.m. New York time

I have no earnings events to analyze as potential new positions on Thursday, and no exits definitely in sight. My position on LOW is reaching a point where it must be managed, which is a polite of saying exited for a loss.

Two exchange-traded funds might be worthwhile candidates for a trade, KRE and XRT. Each shows implied volatility well above the 50th percentile of the most recent movement, although those movements have come within a narrow range. The annual range percentiles are each within a couple of points of the 40th percentile. Also, they are between 1.5 and 1.9 times the VIX, which is an acceptable area.

I don’t plan to trade them because I’m keeping funds uncommitted in order to trade the next earnings season, which  begins April 24, a bit less than three weeks down the line. I mention them because they have acceptably high implied volatility, which has been a rarity so far this year, especially for the ETFs.

By Tim Bovee, Portland, Oregon, April 5-6, 2017

 

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