Live: Wednesday, May 24, 2017

5/24 – 2:50 p.m. New York time

I entered positions in BBY, HPQ, NTAP, DLTR, PVH and MDT. I had expressed doubts last night about whether PVH and MDT would work as trades, but as it turns out, they did. Always my preference, even at the end of an hour and a half of hard trading.

I rejected ANF after a full analysis.

I rejected SIG, without a full analysis, because the $5 interval between strikes causes new much of a loss in granularity, making it difficult if not impossible to set reasonable wings for the iron fly construction.

I placed an exit order on CPB that has not yet been filled. I shall leave it active until the closing bell.

5/24 – 9:50 a.m. New York time

All eight of the prospects I discussed last night continue to qualify for further analysis and possibly a trade. I shall analyze five for sure: BBY, HPQ, NTAP, DLTR and (added this morning) ANF.

I shall make a final decision on how to handle SIG, PVH and MDT later in the day.

I have renewed my order to exit CPB.

5/23 – 9:35 p.m. New York time

I shall be looking at eight earnings plays on Wednesday as potential trades. That’s a lot, and I may be passing on a few of the structurally weaker symbols.

The strongest of the eight are BBY, HPQ, NTAP and DLTR.

The four with weak elements are ANF, SIG, PVH and MDT.

MDT, in terms of implied volatility, is the weakest, with IV in the 28th percentile of its annual range. One other, PVH, also has low IV relative to the annual range, in the 42nd percentile. ANF has a low price, $12.20 per share at Wednesday’s close, which can sometimes cause a problem when constructing a trade. SIG and PVH have no weekly options, forcing any trade to rely on the JUN monthlys, which will be 23 days out on Wednesday. Any quick rejects will come from among those symbols.

By Tim Bovee, Portland, Oregon, May 23-24, 2017

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