eBay Inc. (EBAY)
I am looking at EBAY as a potential volatility play.
CSX Analysis
CSX Corp. (CSX)
Update 1/11/2017: CSX remained within its profit zone until nine days before expiration, when it broke above of its =trading narrow range and came very close to becoming unprofitable. I chose to eliminate the risk by exiting at 6.6% of maximum potential profit.
Shares rose by 3.8% over 28 days, or a +49% annual rate. The options position produced a 7.0% yield on debit for a +92% annual rate.
I’m looking at CSX as a potential volatility play.
Wednesday’s Agenda, update
Post FOMC announcement, I shall be looking at two prospects as volatility plays: CSX and EBAY.
Wednesday’s Agenda
No prospective trades are on my desk this morning. Of course, everything could change with the Federal Open Market Committee interest rates announcement at 2 p.m. New York time. But until then, I plan to enter no new positions.
By Tim Bovee, Portland, Oregon, Dec. 14, 2016
Wednesday’s Prospects
It’s as though the markets are frozen waiting for Wednesday’s Federal Open Market Committee statement on interest rates. The conventional wisdom is that they’ll raise the federal funds rate to a level fluctuating between 0.5% to 0.75%.
Meanwhile, no earnings announcements are on my list for Wednesday, and also no high implied volatility trades. I’ll check again after the announcement, scheduled for 2 p.m. New York time.
By Tim Bovee, Portland, Oregon, Dec. 13, 2016
Tuesday’s Outcomes
I neither entered nor exited positions today.
By Tim Bovee, Portland, Oregon, Dec. 13, 2016
Tuesday’s Agenda
I’m passing on my one prospect of the day, a volatility play on UNG. With a price of below $9 per share and a dollar between strike prices, UNG’s option’s grid lacks sufficient granularity to construct a trade that meets my guidelines.
As part of my December learning project, I’ll be keeping an eye on trades placed on Dough and shall shadow those that catch my interest.
By Tim Bovee, Portland, Oregon, Dec. 13, 2016
Tuesday’s Prospects
I have one volatility prospect, UNG, and no earnings prospects from the Monday, Dec. 12 trading session.
I shall make a final trading decision on Tuesday, Dec. 13.
By Tim Bovee, Portland, Oregon, Dec. 12, 2016
Monday’s Outcomes
PAY Analysis
VeriFone Systems Inc. (PAY)
Update 1/10/2017: PAY rose beyond the boundary of the profit zone into loss territory after earnings were published, and remained there until the exit.
Shares rose by 13.5% over 29 days, or a +178% annual rate. The optoins positions produced a 28.3% loss on debit, for a -356% annual rate.
PAY publishes earnings on Monday after the closing bell.
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