Live: Tuesday, May 23, 2017

5/23 – 3;20 p.m. New York time

I have entered new position on AAP, EWZ and LOW.

I have exited no positions. I have an exit order in on CPB that appears unlikely to be filled. I shall keep the order active until the closing bell.

I posted an essay exploring the uses of implied volatility and how to judge its level for the purposes of trade selection, appropriately titled Implied Volatility: High or Low?

5/23 – 10 a.m. New York time

In addition, I shall also be looking at rolling forward with another position on EWZ, the one liquid exchange-trade fund with decently high implied volatility.

5/23 – 9:50 a.m. New York time

I shall be posting an analysis of AZO as an earnings play today. Open interest on LOW’s options remains lower than is compatible with my guidelines. Honestly, as earnings season winds down and trades become scarce, I’m tempted to bend the liquidity rules. Final decision: Still pending.

I have placed an exit order at my target price on CPB that has yet to be filled.

5/22 – 8:55 p.m. New York time

I have one prospective earnings play for analysis on Tuesday: AAP. A second symbol, LOW, is normally a good trade, but this time around it is short on open interest at strike prices I would use for trading. I shall revisit it on Tuesday and see if I can make it work.

By Tim Bovee, Portland, Oregon, May 22-23, 2017