1:35 p.m. New York time

I’ve updated my thought experiment on hedged earnings plays with a day-after observation. See Thought Experiment: An IBM earnings play.

10:05 a.m. New York time

I exited my managed shares positions XLE and XLV after each received a sell signal. I had only one buy signal that I could reasonably use to fill a slot: EWM, which I entered for $28.55 a share.

XLE produced a 0.6% loss over two days, or a -115% annual rate. The price change was down 39 cents.

XLV produced a 1.1% loss over four days for a -103% annual rate, a decline of $1.04.

Here’s the lineup:

sym	slot #	price $	sector
(empty)	1	#N/A
EWM	2	28.55	intl-malaysia
XBI	3	86.76	biotech
XHB	4	42.07	real estate
XOP	5	25.16	energy

By Tim Bovee, Portland, Oregon, August 2, 2019

Disclaimer

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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