Monday, December 06, 2004

Quick update and plans

My account at mbtrading.com is now open. My plan is to trade options on that account. Hopefully the low commissions will help me manage my losses and take profits better compared to what I'm doing with my Scottrade account. Here's a summary of my planned strategy that I'll come back and refer to and see how much I stuck with it:
  • Mostly I will try to maintain a balanced long-short kind of portfolio, with an equal split between calls and puts.
  • I will normally buy in-the-money options 3 to 6 months away and hold them for 2-6 weeks.
  • I'll select my trades based mostly on my favourite medium term technical indicators: Momentum, ROC and MACD buying on crossovers. I'll screen my stocks based on some simple technical parameters I have setup on StockFetcher. I'll select trades based on fundamentals as well as other technicals.
  • Occasionally I'll also pick up trading ideas from my MSN stock screens
StockFetcher screens:
Calls:
Show stocks where average Volume(90) is above 50000
and weekly MACD histogram(12,26) crossed above 0
and weekly momentum(12) crossed above 0
and close is between 5 and 250
and stock is optionable

Puts:
Show stocks where average Volume(90) is above 50000
and weekly MACD histogram(12,26) crossed below 0
and weekly momentum(12) crossed below 0
and close is between 5 and 250
and stock is optionable

Trades that are on my radar:
Calls: CSCO RHAT Puts : MIK BOL

0 Comments:

Post a Comment

<< Home