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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank

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To: LastShadow who wrote (1736)7/13/1997 1:31:00 PM
From: Jenna2   of 120523
 
Options Strategies, I was about to post but my 15 minutes expired.
I don't pretend to be 'expert' here, quite the contrary... I've been trading nasdaq's bleeding and wounded stocks for the past year and have begun to apply similar strategies plus a few new ones to options selection..

There are many searches for options selection. Depending on how long I want to hold them and market climate. I like options in the money and would like expiration within 1 month or 2 at the most.

Search Strategies:

1)Sometimes I look for unusual price behavior or unusual volume in options (MCIC is an example of this)

2) Sometimes I apply technical criteria to the option and stock itself to find all options whose underlying stock had a Wilder 14-day breakout today, or options themselves had a Wilder 14 day breakout/or MACD breakout..

3) Sometimes I look for options whose underlying stock has a chart pattern of a turnaround situation,.. a stock has done poorly over the last six or so but has done much better the last one to three weeks. (my favorite one) I would choose only fundamentally superior stocks that have had their relative strength weakened due to a bad quarter.

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Because we are so close to options expiration and we are in midst of earnings reports, I am looking into my 'bag of tricks' for the best daytrades/short term holds for this week.

I looked for those options that have the highest potential gain if the market should advance and if the stock itself advances..I looked for options that have very high gammas, deltas, vegas and good volume.
Then what good is high gamma and high delta if the underlying stock doesn't have a chance of moving up or down so I search for the underlying stocks using technical indicators such as MACD, stochastics, and Wilder for this purpose and find those with best chance of moving up/down.

Look upon these as just an "Options Watch List" for the next 5 trading sessions..
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