ScanPlan

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Long Term Plan

Taken from the Etrade Webinar:

Run the stock screener WebinarExampleLongTerm

check graph against s&p and see it is consistently outperforming. All green

Don't buy anythine close to earnings, wait 

Look at institution investing, ie sell offs bleeding

review market edge, shows sell price

How to Choose my Stock

• Look for popular stocks, where the market is putting their money and qtrs beating est.

• review fundaments/technicals/macroevents

• evaluate market sentiment is it positive or negative.

• act quickly on gut feel.

Straddles & Strangles (Don't know market direction)

STEP 1 - Review Optionetics Stock Option Rankers - Cheapest options

• 1. cut'n'paste Table

  2. Paste Special --> Text in Excel

  3. View--> Freeze Panes--> Freeze Top Row

  4. Rank Lowest IV of the year

  5. New Column called % from lowest

  6. Formula = current IV/(High IV = Low IV)

  7. Sort % from lowest values smallest to largest

  8. Get stock in lowest 20% of its yearly range

  9. Stock > $20

STEP 2 - consolidation - every 3 months (earnings)

• 1. Go to Bigcharts.com

  2. select ADX/DMI

  3. if the ADX crosses above 15 then market likely to breakout.

  4. http://www.profitspi.com/stock-screen.aspx?s=0

  5. can also use bollinger bands (closer bands together = consolidation)

  6. To do this can go to optionetics and look at quiet stocks

STEP 3 - Catalyst

• 1. look for earning date that is 3-4 weeks in the future Mostly in Feb-May-Aug-Nov

NOTES:

Index - QQQ is the cheapest, do on the OEX

Momentum

-stock price change rankerExplosive stocks

-look for top 20 stocks that have moved the most in the last 10 days.

Scan Stocks for type 1 buys & sells (Elliot Wave system)

• 1. Has to be on wave 4

  2. Has to have an oscillator that has pulled bank

  3. Has to have a PTI > 35 (Profit Trend Indicator)

  4. Has a Volume > 300K

  5. Price Filter > $15 or BigBear >$50

Etrade seminar 50+200 SMA

Symo 13 EMA + 21 SMA

• • 13 line moves above 21 day time to buy

  • 13 line moves below 21 day time to sell

Vertical Debit Spreads

go for cheap options

Bull Call Spread buy ATM call, sell OTM call with >90 days exp.

• Bullish market

• > 300k volume

• scan charts for higher highs and higher lows

• Confirm trend using an oscillator

• Make sure institutional money flowing into the market

• Set a price target

Credit Spreads/Calendar Spreads

-search options with high volatility optionetics.com

• 1. Most Actives longmeasure = When market is oversold in intermediate/long term scan for stocks making new highs.

  2. Good long term growth stocks - look for long upward trends on stock charts (10/15 years) and use A/D to estimate more highs or to short if reached the ultimate high.

  3. Hot Stocks that follow the market, the flyers, big corporations

Formula Option

• • Look for stocks with high momentum

  • Look for stocks that are up/down 30% for the day or moved > 5pts

  • Volume > 300k

  • Find Catalyst, why did stock move. ie, news, management, accounting

  • Buy options <$1

  • Enter trade preferably before noon

  • Chart 50/200 SMA