Option Trading Starts With Searches
Your option trading needs to start here one hour before the "open". The Pre-Open Gainers and Pre-Open Losers searches give you a jump on your option research. The media covers stocks with news and they miss stocks with pent up overnight demand/supply. This search shows you all of the action so that you can spot the hot sectors and plan your option trading before the bell.
Most option traders know that stocks that close on their high or low are likely to continue the move the next day. The Prior High Closer and Prior Low Closer columns show you these opportunities. When I'm done trading options I turn off the lights and I cleanse my mind of the chaos. In the morning, the Prior Gainers and Prior Losers searches refresh my memory. They often remind me of an option trade I didn't have time to research the day before.
Option trading requires awareness and the Gainers, Losers, Gap-Up and Gap-Down searches show me the relative strength and weakness within the market. I thirst for stocks that are currently making a new 5-Day High or a 5-Day Low. This search alone might be all an option trader needs and I believe this is the only free resource where you can find them.
I start every option trading day right here. These searches help me quickly get my bearings and they are a frequent source of new option trades.
Option Trading Definitions
Using Pre-Open Gainers/Losers for option trading - These stocks have traded at least $.50 higher than the prior close or are bid at least $.10 higher than the close. The opposite is true for the losers.
Using Prior Gainers/Losers for option trading - The gainers are listed in descending order starting with the largest dollar winner. The losers are listed in ascending order starting with the largest dollar loser. The net change yesterday was at least + or - $1.00.
Using Prior High/Low Closer for option trading - Stocks that finished in the upper 98 percentile or the lower 2 percentile of the previous day's range. Additional range and volume criteria weed out the "flat-liners". The results will often include some key reversals - a very powerful price formation.
Using Gainers/Losers for option trading - These stocks are arranged in descending/ascending order by the net change. The stock with the largest dollar net gain appears at the top and it must be +/- $1.00 or more.
Using Gap-up/Gap-down for option trading - I classify these stocks as "true gaps". A gap up has a current low that is more than $.50 higher than the prior day's high. The opposite is true for gap down. This move represents a large order imbalance and the trades are completely out of the prior day's range.
Using 5-Day High/5-Day Low for option trading - These searches are dynamic and they reveal short-term breakouts/breakdowns. I have found these movements to be significant and often tradable.