Earlier this week we looked at SUNE which was setting up for a long. Now we’ve got the hourly rejoining the Daily/Weekly and it’s time to trail the position for as long as it wants to run. WMT and SPWR were also trades that showed up on the TEA Radar that have been trading nicely – often defying the broad market direction.

The setups that I’m looking for (and that are working) are long term trends with short term consolidations. By entering when the short term is quiet; the options prices decline, the probabilities increase, and the risk is easier to define. Even in this relentless bull market, some of the best trades have been long put positions on bearish stocks.

While market neutral index strategies for income are the backbone of my work; the primary risk in that business is a big move in the market. To be prepared for that, I always want to have positions with “unlimited” reward in the direction of the trend. The best way I have found to accomplish that is to be in individual names that are outpacing the market.

And the best way to be in these names is by looking at multiple time frame trends using simple and robust technical tools. The biggest challenge in this is finding the multiple time frame setups in the big universe of stocks, ETFs, futures, etc.

Because I don’t want to spend hours every day analyzing 300+ securities… I invested the time into automating the entire process of analyzing the three time frames on over 300 names (that’s 900+ charts). What would take hours, now takes about 30 seconds of computer time.

This coming Tuesday, July 1st, I’ll be sharing how I find long options trades to help make my total options portfolio ready for high volatility conditions. I hope to see you in the webinar.

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Andrew Falde
[email protected]

No relevant positions. Options risk disclaimer.