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Find weekly options that will explode in value
With our new scenario engine, you can find options that expire this week and will double or more in value if the stock moves in your direction. You can find the best options that have the maximum potential to return the most ROI, while still trading small and preserving your capital.
This article will explain how to build a scan to find the best calls that will double in value if the stock moves 1 ATR in your direction up. You can do the same for puts, or change the scan to find the fine-tune it to your style (at least three times profit, longer time period, only specific sectors, etc.).
In this scan, we will use ATR to determine the price target for the stock by expiration. The ATR will be different for each stock, thus taking into account the different volatilities of different assets. The ATR is also an indicator for the average Daily move, so one ATR move sounds like a reasonable target for such a short period strategy.
This article will explain how to build a scan to find the best calls that will double in value if the stock moves 1 ATR in your direction up. You can do the same for puts, or change the scan to find the fine-tune it to your style (at least three times profit, longer time period, only specific sectors, etc.).
In this scan, we will use ATR to determine the price target for the stock by expiration. The ATR will be different for each stock, thus taking into account the different volatilities of different assets. The ATR is also an indicator for the average Daily move, so one ATR move sounds like a reasonable target for such a short period strategy.
- Choose the long call strategy.
- Loosen some option filters: Break-Even point, Bid-Ask Spread, Moneyness - Change all to 'any.' (We will use the scenario engine to filter options out).
- Change the max loss filters to fit your risk tolerance.
- Add ATR $ and ATR % columns to get a sense of the required move.
- Add a Scenario, choose ATR move, and the input is '1'.
- In the PL on margin on expiry, choose the 'advanced view' and enter 100 (for 100%).
- Sort by the PL on expiry column and analyze the results.
Please note that this is a short term strategy, so you'd want to open charts and see if you think the price will go up from there. Be sure to utilize the fact that our scanner is intraday, and you can find different trades during the day session - so no rush.
Important tip: This is a high-velocity system, so if you track it with a trade log (even paper money), you'd be able to see improvement very quickly.
Important tip: This is a high-velocity system, so if you track it with a trade log (even paper money), you'd be able to see improvement very quickly.
Read more:
Read about the scenario engine: KB Article
We have added two predefined scans you can use to get you started. Just go to the predefined and pick the 'scenario' tag: app
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