By: Tom Gentile
on July 22nd, 2022
Sector ETF Performance and Money Calendar Continued
Let’s stick with the process brought to light to you all last week.
We looked at the 1-month sector performance seeing which sector had weakness and then looked for a security with a bearish Money Calendar pattern for which we would try and find a bearish option opportunity.
We are reversing that process a bit in that we are looking at a sector with a bullish 1-month performance that we can seek out a bullies Money Calendar patter and bullish opportunity.
Back to www.sectorspdr.com and the 1-month correlation tracker. Technology is strong and only trails the Consumer Discretionary sector.
Technology has securities that tend to have more robust price moves so as we look to the Money Calendar data we see NVIDIA Coro (NASDAQ: NVDA) at the top of the list when sorted by largest Power Meter.
Power Meter measures avg. profit move over the period of days in the more recent few years vs the avg. profit over the past 10 years. If the avg, profit move in the more recent years is greater than that of the past 10-years that is a good sign.
There is more than one security that has that happen our tools just sort by the largest power meter to the lowest, (and we are researching further on NVDA as it has the highest power meter reading.
It is a 30-day pattern. It has a 90% accuracy. The avg. profit over this period of days the past 10-years is $6.62 pr 6.62 points.
Option Strategy Consideration: Call Credit Spread
This is where one Buys to Open the lower strike Call and on the same order ticket Sells to Open a higher strike Call for the same months expiration.
Pure long call options we would consider have prices that exceed the amount we wish to spend on a per contract basis, which is why just the Call Credit Spread.
App: Toms Option Tools
Market Insight articles may show images of lists of stocks meeting a variety of options parameters like Unusual Call and or Put activity or Expensive IV found on my app Toms Option Tools.
Other times I will have other charts may work to amplify my educational points.
Those options data lists, however, can be found on my app Tom’s Option Tools. Use your device to search up and download this app and get free access to the Morning Reports section of the app.
Other parts of the app are available at a premium subscription rate, but the Morning Reports Lists are yours free.
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