BP Analysis

BP p.l.c. (BP)

BP publishes earnings on Tuesday after the closing bell.

I shall use options that trade for the last time 11 days hence, on Nov.. 10.

Implied volatility stands at 20%, which is 1.9 times the VIX, a measure of the volatility of the S&P 500 index.

BP’s IV stands in the 52nd percentile of its annual range and at the peak of its most recent broad movement.

The price used for analysis was $39.67.

At this point I can go straight to a decision.


Decision for My Account

BP’s implied volatility stands at below my minimum require of double the VIX, at 1.906 to be precise. If I were having trouble finding trades I might bend the rule, but there’s no need this week, at the peak of earnings season. I can afford to insist on perfection. No trade.

By Tim Bovee, Portland, Oregon, October 30, 2017


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 decisions for his or her own account, and take responsibility for the consequences.

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