10:15 a.m. New York time
I have no earnings plays that I care to take from today’s seven prospects. I’m looking for stocks with market caps above $100 billion (although I’ll fudge that figure) and implied volatility ranks in the 1st quintile (81-100). None of the seven fulfills both requirements, and so I shall reject them all.
The prospects are:
1st quintile (81-100): OAS, GLUU and HL
2nd quintile: CVS and LLY
3rd quintile: AES and ATRS
LLY is the sole prospect with a qualifying market cap, and its IV rank is in the 70s.
Today’s Book
Thinking Fast and Slow
By Daniel Kahneman
This 2012 best-seller contains a great truth that is important to traders like us. Trading is psychology. How you think determines what trades you make. If a trader treats the markets as a rational machine, to be understood in detail, then you will tend toward a certain sort of analysis — perhaps looking at the underlying business and finances of a company. That would be Daniel Kahneman’s slow thinking. If we rely on intuition, on the feel of of a trade, our analysis will look quite different — perhaps the patterns on a chart that engage our marvelous human pattern recognition systems. The ancient Greeks lived by the aphorism, “Know yourself”. Traders today will profit if they live by those words as well.
The status of my current options positions.
| sym | option debit | share price | beyond profit zone | curr % max profit | net prft/shr $ | option days left |
| EWZ | 1.60 | 41.35 | high | (86.0) | (0.74) | 11 |
| GILD | 5.30 | 69.17 | 14.2 | 0.88 | 46 | |
| HON | 5.08 | 147.17 | low | 19.9 | 1.26 | 11 |
| JNJ | 7.01 | 142.09 | high | (25.2) | (1.41) | 11 |
| MCD | 8.09 | 179.24 | high | (30.5) | (1.89) | 11 |
| MSFT | 7.45 | 106.43 | 13.4 | 1.15 | 46 | |
| PM | 3.89 | 89.60 | high | (13.4) | (0.46) | 11 |
| SPY | 3.91 | 271.69 | 7.3 | 0.31 | 46 | |
| UPS | 8.90 | 106.36 | low | (8.5) | (0.70) | 46 |
| WBA | 4.60 | 79.87 | high | (29.2) | (1.04) | 11 |
And of my shares positions.
| sym | share price | net result % | net profit $ | days held |
| AAPL | 199.80 | -10.8% | (24.17) | 52 |
| CHK | 3.80 | -5.0% | (0.20) | 52 |
| FXI | 40.98 | -0.6% | (0.23) | 52 |
| SPXU | 38.70 | -4.6% | (1.86) | 174 |
| TSLA | 331.25 | 8.6% | 26.26 | 35 |
By Tim Bovee, Portland, Oregon, Nov. 5, 2018
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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Based on a work at www.timbovee.com.L
Tim Bovee, Private Trader 