Category Archives: Stocks

Earnings Plays I

(1) Go to Zacks and get a list of the stocks that are reporting earnings AMC this day and BFO tomorrow.

(2) Use Notepad++ to make a list of stocks for the watchlist. You can also download a CSV file from Zacks to put into a spreadsheet if that works better for you.

(3) Use TEMP (or some other watchlist) as a watchlist in thinkorswim TOS and place the stocks in the watchlist. Then go thru them to see which ones had a 7% or more as the Market Maker Move. You can verify this percentage with https://marketchameleon.com/Calendar/Earnings?d=20191029. Change 20191029 to the correct date. Go through the stocks one at a time trying to find the best deals for an iron condor or an iron butterfly.

(4) Be sure and check the chart.

(5) You can also place the watchlist in a live TOS (not paper) and export it to a spreadsheet where you will have all of the data at your fingertips for a quick decision. However, usually the list will be short enough so that it will take little time to evaluate the list.

Option Alpha Earnings Trades:

Stocks Lesson 19

Finviz – Here are the numbers. P/E = 15. Dividends = N/A. ROA = 15.01% Up. ROE = 30.01% Up. ROI = 25.01% Up. PEG = .99 or Less. Price/Sales = 1.00 or Less. Price/Book = 1.00 or Less. Price/Cash = 2.99 or Less. Price/Free Cash Flow = 15 or Less. EPS growth this year = 25% or better. EPS growth next year = 25% or better. EPS growth past 5 years = 25% or better. EPS growth next 5 years = 25% or better. Sales growth past 5 years = 25% or better. Current Ratio = 3 or better. Quick Ratio = 3 or better. Long Term Debt/Equity (mrq) = .1 or less. Total Debt/Equity (mrq) = .1 or less. Gross Margin (ttm) = 50% or better. Operating margin = 25% or better. Prifit Margin 20% or better. Insider ownership = 30% or better. Insider transactions = 20% or more. Float Short = 20% or more is BAD (no good number listed). Short Ratio = no good or bad listed. Performance for the week = anything positive is good. Performance for the month = anything positive is good.

Stocks Lesson 18

Dividends. Let’s say I buy a stock for $10 and it pays me $.25 each quarter as a dividend. This means that I am getting a 10% return on my money with no increase in the value of the stock. Dividend stocks are generally thought of as “retirement” stocks. You just hold onto them year after year, living off of the dividends.

You can get dividend history for stocks at Yahoo Finance (many years),  StreetInsider.com (7 years),

The following are some articles about dividend stocks:

16 Rock-Solid Dividend Stocks With 50 Years of Increasing Dividends and Market-Beating Performance: This is a good article. It talks about the best of the best in terms of “Dividend Kings” in that the following 16 stocks “have increased their dividend payments each and every year for 50 years in a row.” The stocks are: KO, JNJ, CL, PG, MMM, LOW, GPC, DOV, EMR, PH, AWR, CINF, LANC, NDSN, NWN, and VVC.

Stochastics

The Most Reliable Technical Indicator I Have Ever Used | MetaStock | 565K views

How to Trade Stochastics Like the Pro’s Do | InformedTrades | 471K views

Trading with the Stochastic Oscillator Part 1 of 2 | Perfect Stock Alert | 201K views

How The Pro’s Trade Using Stochastic Technical Analysis | Stock Market Strategy | 181K views

How To Trade With Stochastic In Forex | Professional Fx Traders | 123K views

How to Use the Stochastic OscillatorTrading Tips | 58K views

Use Stochastic Oscillator The Right WayNetPicks Trading | 55K views

How to trade stocks using the Slow Stochastic IndicatorPerfect Stock Alert | 53K views

The Ultimate Indicator: The Stochastic DivergenceDayTraderRockStar | 45K views

Slow Stochastic for New TradersTrading 212 | 42K views

What is Slow Stochastic OscillatorTrading 212 | 38K views ***

How to use Stochastic Indicator like a Pro: When to use, when not to use | Rayner Teo | 38K views

Stochastic Momentum Index Indicator | InformedTrades | 38K views Note: This is the Stochastic Momentum Index Indicator

How to determine the best entry using the Stochastic Oscillator | Visionary Trades | 33K views

Stochastics RSIStockGoodies Chart-School | 32K views Note: This is the Stochastic RSI Indicator

Timing Trades with the Stochastic IndicatorMartin Pring | 31K views

Fantastic Stochastics: The stochastic indicator explained simply. | David Moadel | 12K views

Stocks Lesson 17

Chartist Stuff – There are people (Chartists) who say ignore the fundamentals of a stock. Face it! The market is irrational and the only thing that really matters is the direction of a stock and there are really only two directions – up and down. The Chartists believe in looking at the charts to see what is going on. I think there is some credibility to be found in this approach.

The indicators that Chartists use are part of apackage referred to as Technical Analysis (TA). TA uses indcators. The three most common indicators are: Stochastics, RSI and MACD.

Stocks Lesson 15

ETFs. You can’t do Value Investing with ETFs. But, you can mimic the Index Investing that John C Bogel made popular with his books and Vanguard. You just have to do it with “sector indexes” that mimic broader market indexes.

ETFs do not have the traditional P/E, debt/equity, 5 year returns, ROE or other fundamental numbers that apply to Vlue Investing. What’s left are performance numbers (returns) and sector evaluation.

Seeking Alpha – This is a great recap of sector ETF movement.

etf.com – The performance tab on this page will let you sort by performance. Good way to find potential ETF buys. 

etfdb.com – See if there is anything here worth using.

Morningstar – rates ETFs.

Barchart – Rates ETFs really well.

etfscreen.com – This site has a “relative strength index” that looks promising.

swingtradebot.com – Interesting website.

Benzinga – Investigate to see what’s there.

Tom Lydon, ETFTrends.com’s founder, uses the 200-day line as a simple buy and sell signal. He buys when an ETF crosses above its 200-day line and sells when it falls about 8% off its 52-week high.

Fund Flows – Are they significant? How so?

etf analytics scoring methodology – ETF.com - Good ETF discussion.

TD Ameritrade – Think risk, ratings, classification, etc.