Going back to 2009, August is the one month of the year where I will usually trade the least amount of options. There are two main reasons for this. First, August is usually one of the least volatile months of the year. Since directional options strategies require movement, this is one of the worst months of the year to trade directional option strategies, with the exception of diagonal spreads.
Second, the stuff that is usually outperforming this time of the year, over the last several years are the types of stocks that “float.” These are stocks that are generally low priced, low float, terrible fundamentals, and belong to some of the least desirable industry groups.
Ragin does a great job of locating these stocks each day, and as you’ve noticed, the stocks on his lists are capable of generating double digit percentage returns each day. Not all of these stocks are optionable, but at the end of the day, when the S&P is fluctuating in a 3 point range, these are the types of stocks that are posting the best day to day returns, which make them the only thing really worth trading each week.
The key to trading these types of stocks is to find a high number of set-ups. On my watchlist, I listed roughly 15 that I am tracking this week. I try to set price alerts in each name, so I am notified when one of the stocks perks up. Either that, or watch a grid of them on an intra-day time frame, on a dedicated monitor.
In case you missed the set-ups, here is the list.
I’m adding a few more on my radar this week as well:
CORN catch that bottom..long
loving that $CIMT, under followed 3d play. Can squeeze here.
just as fyi, $CIMT reports tomorrow BMO
are you sure? not seeing it
got it, thanks
Wow. It’s dead as shit around here.
the image quality is bad today. is it because you’re used to small image formating? not prepared to take the big spot today? 😀
Actually, that is Fly’s image. I normally use my own.
You get stuck in that ECTY, OA?
Yep, sho did. First time I’ve been bit this year.
You dump it already? What’s your exit strategy for ones like this?
No, last time this happened, I was in EXM…trying to trade the trash cycle. I bought for .48, watched it go to $1.30…then a week later announced same news and got smashed. Give it a few weeks, normally they retrace a bit.
Just earned twice my PPT annual tuition in DDD via PPT oversold indication. Thank you Fly and Jeremy.
OA, please clap this taffer guy up. Did le fly give you banning privileges? If so, proceed….
LOL – thanks.
Getting real fed up with this Taffer guy. GET A LIFE
Any thoughts on BBRY? seems to be entering a nice volume pocket here, high short interest and I think it qualifies as “trash” lol
Hard to manage risk when stocks are flying, but this one looks good. Great volume too.
Tell that to his August CLF $21 calls.
OA, what are your thoughts on P here….seems like a great opportunity to get short
I am long… can’t bet against these stocks yet.
What do you think of CBMZ, I don’t understand why the stock has dropped so much post earnings?
I mean CBMX. Mistyped ticker above.
I’d wait for it to stabilize, that’s an ugly move.
Okay, that’s what I’m doing.
I’m going hyper loop with Mr. Musk via the Aug. week 5 150s .
This dude does no how to draw a crowd and today’s downgrade is an opportunity .
good grief …..NO/KNOw