Screening Methodology Used To Identify Stocks For Our Daily Watchlist

Here is the list of criteria used for various stock lists published on our daily watchlist.

Exit is more important than entry for Long Options trade

Option buyer’s expectation

If you are an option buyer two things have to happen for you to make money:

  1. Underlying stock must move in your favor and

  2. Must move beyond the strike price within certain time

Also as the delta of an option keeps decreasing probability of being in the money at the time of expiration keeps decreasing.

Time decay

Option price consists of two value:

  1. Intrinsic Value and

  2. Extrinsic Value.