Posted in
Daily Report
By: Tom Gentile
on April 3rd, 2023
When starting out ones trading day, the question is usually where to I start looking for options trading ideas?
My team and I contest it should be the Morning Reports Lists in my tools www.tomsoptiontools.com/
It has 6 lists each with their own unique classification and 10 stocks that meet that classification.
Even with those 6 list and the corresponding options one still has to decide which of those options they will pursue.
Its at that point one can realize tuning in to the financial news outlets, TV, internet, print or all there are news stories happening in the markets overall, certain sector news and within those sectors individual stock news.
3 News Stories Happening Today that Could Be Where You go for Option Trade Ideas
All of these may have more specific education and commentary coming on them this week as we may want to dive deeper in to the story and flush out what action we want to take, if any, due to the story.
1) April is the best performing month over the past 16 years
If the data from CNBC is remembered correctly April over the past 15+ years has seen an average increase of 1.9% for the month. This is a more broad-based item that speaks to overall market performance and doesn’t home in on one specific sector or stock, but if you were wondering if you should lean bullish or bearish this piece of data may help you make your determination.
2) OPEC+ Surprise Output Cuts
If you have been studying my work and what I have been educating for years you would have heard and know by now my teaching that we are in a seasonally bullish pattern for oil. The pattern is highlighted by the ETF USO and that 75% of the time the past 16 years it has trade higher from mid-Feb. to mid-July.
It got off to a slow start this year, having slid back since mid-Feb, but with the surprise cut made by OPEC+ the ETF and many other oil ETF’s and individual stocks are seeing a really nice bullish pop today.
3) Housing Numbers
Nationally, Home prices rose 0.16% in February. We are seeing the strongest one-month gain since May of last year. This is the first time in 7 months that home prices have seen an increase.
There is more to each of these stories.
It is not the point of this article to do a deep dive into any one of these and make a case for putting ones money to work in any of them.
The point is to say a process for all when deciding where to look and what options to search up starts with the Morning Reports and checking the news stories and seeing if there is any options activity in the Morning Reports lists corresponding to the news from that sector or from any specific stock news.
Sector Analysis
A website we like to use in our research is www.sectorspdr.com.
SPY
XLE
XLRE
There are other ETF’s for these sectors, but these are the ones from the site we use.
If you see news that you feel should drive the sector / ETF / Stock higher, but the chart reads like it is in a downtrend and that confusion or the fact the news and the trend don’t match you either trade based on an anticipation of what the chart will do off the news OR…
One waits for the chart to trend more commensurate with the news and when you get more in a situation where the news and the chart coincide or match maybe that breeds confidence in options trades as the Morning Reports show.
App: Toms Option Tools
Toms Option Tools scan the markets for bullish and bearish trade opportunities using our proprietary scans and strategy algorithms. TTR Darknet finds bullish entries based on triple stack channel collisions. Money Calendar identifies seasonal patterns with at least 90% accuracy looking back 10 years. Weekly Cash Clock finds short term opportunities that last a week on average. Microcurrency Trader applies Darknet technology and moving averages to cryptocurrencies. Velocity Trader utilizes volume spike and Velocity indicators on custom stock lists. Quantum Scripts scans the markets for momentum acceleration signals and employs Quantum noise filters. Optimal Trader finds directional pre-earnings opportunities that are optimized for entry date, stock movement, and volatility surge. My Trades tracks the profit/loss of your trades, displays stock charts and risk graphs, creates new trades, and edits existing trades. Morning Report provides top 10 option rankings in 6 categories each day.
Disclaimers
Stock and options trading has large potential rewards, but also large potential risk.
You must be aware of the risks and be willing to accept them in order to invest in the stock and options market. Do not trade with money you cannot afford to lose.
This is neither an offer to buy/sell/ or recommend a particular stock or option.
Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been actually executed, the results may have under or overcompensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with hindsight.
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