Best stock options plays

The 10 Best Stocks for Options Plays in This Market

 

best stock options plays

Jul 30,  · A $2 move on a $10 stock is a big 20% move. Yet, I can find a $2 move on a $50 stock, which is a 2% move relative to the stocks price, every single day. This is the most obvious thing you can look for when you are filtering the best stocks for options trading. Aug 22,  · Finding the best stocks for options trading is actually very easy when you know what to look for and have a solid understanding of what your portfolio "needs" to maintain it's balance. Master these two points, and a little technical analysis if necessary, and . Aug 28,  · The 10 Best Stocks for Options Plays in This Market By Tom Gentile, America's No. 1 Pattern Trader, Money Morning • @powerproftrades • August 28, View CommentsAuthor: Tom Gentile.


My Top 10 Stocks for Options Plays This Week


The biggest market drop in recorded history on Monday… a wild end-of-day plummet on Tuesday… a huge up day on Wednesday… and more bullish action today? Talk about opportunity!

Right now, the only real barrier to trading profits is a stock that doesn't move, best stock options plays. So in times like this, I like to use a really great tool that identifies what I call my "Top Movers" — the stocks and ETFs that have had the biggest percent moves and best correlation to the market. Then I can focus on finding the best stock with the best option trade best stock options plays the best potential to double in value on the smallest move in the stock.

That's a lot of "bests. But the second-biggest obstacle is a stock that does not move. You can do all your homework and make all the right moves, pick a solid stock with good fundamentals, even anticipate where the markets are going in the weeks ahead.

But if the underlying stock or ETF doesn't move, your options will simply waste away. When the stock does not move, day after day, the time decay is even worse. You're not getting any stock price move that is either intrinsic to counter theta decay, or you're not getting any stock price move that gets your options close to "in the money" to get you that intrinsic value increase.

This is why I favor the "in the money" ITM options to begin with on my shorter-term directional long call or put option trades. You can probably see where I'm going best stock options plays this. The best way to avoid this is to trade calls and puts on stocks that move in price, best stock options plays.

You can see movement or volatility in price by looking at a chart. If a stock trades sideways in a range for three, best stock options plays, six, or more months, that is not a stock to try and trade options on.

That's not to say you should avoid any stock that trades sideways. If that sideways range trades slightly up or down in trend but has a five-point range between support and resistance, then trading options on that stock becomes very lucrative indeed, best stock options plays. I am not a fan of going through all the "optionable" stocks one by one on a charting program. There are over 2, optionable stocks, and when you add in ETFs and indices, that number goes way up.

Trying to go through them one by one will eventually drive you crazy. Fortunately, I've developed a great method to whittle it down to the 10 best stocks at any given time.

 

Find The Best Stocks For Options Trading With 4 Clicks

 

best stock options plays

 

Jul 30,  · A $2 move on a $10 stock is a big 20% move. Yet, I can find a $2 move on a $50 stock, which is a 2% move relative to the stocks price, every single day. This is the most obvious thing you can look for when you are filtering the best stocks for options trading. Aug 22,  · Finding the best stocks for options trading is actually very easy when you know what to look for and have a solid understanding of what your portfolio "needs" to maintain it's balance. Master these two points, and a little technical analysis if necessary, and . Aug 27,  · Once you have this list of stocks, you can run any number of screens and filters to assess which of these “Top Movers” would make the best option play. For example, you can run a “percent to double” search on the stocks and see which one has an option that has the potential to double, then further analyze them to see which one requires the lowest percentage move in the stock price .