Live: Tuesday, Sept. 17, 2019

12:55 p.m. New York time

I’ve posted a hypothetical trade — a paper trade — on FDX to toy with the idea of how best to do earnings plays. The truth of the stock market is that usually, not a lot happens until the approach of an earnings release, and then traders start positioning, causing the price to move, until earnings day, when there is a random quantum leap in one direction or another, or no leap at all. Earnings day is a coin toss, but coin tosses can be profitable.

11:15 a.m. New York time

XOP remains beyond the profit zone of my short iron condor position, but has moved closer to the upper boundary. At the current rate of change it would only take 0.35 days to return to the profit zone.

We are 31 days left before the options expire, and 10 days before I manage the winners — currently only XLY — and move to the sudden-death phase remaining positions — GLD and XOP.

By Tim Bovee, Portland, Oregon, September 17, 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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Based on a work at www.timbovee.com.