Stocks Watch-list for Trading On Oct 26, 2020

Strong Stocks
List of stocks that have higher probability of moving higher today.
Symbol	Description	Last	Imp Vol	IV / ATR %	IV_Percentile	Volume
PG	PROCTER & GAMBLE CO COM	142.38	23.19%	14.73	10.11	4,278,287
CL	COLGATE-PALMOLIVE CO COM	79.34	26.91%	17.58	14.26	2,259,356
COST	COSTCO WHOLESALE CORP COM	374.60	28.12%	16.28	22.24	1,107,978
WMT	WALMART INC COM	143.85	30.83%	20.95	25.32	3,513,489
ACN	ACCENTURE PLC COM	229.70	31.33%	14.84	19.33	1,187,637
MDT	MEDTRONIC PLC COM	111.42	31.51%	13.28	17.89	3,919,053
MCD	MCDONALD'S CORPORATION COM	228.71	31.68%	19.81	17.87	2,278,124
PPG	PPG INDUSTRIES INC COM	134.27	33.23%	11.73	15.86	980,625
CSX	CSX CORP COM	81.29	33.54%	12.11	15.25	3,178,494
UNH	UNITEDHEALTH GROUP INC COM	330.60	34.15%	15.06	18.30	2,349,525

Weak Stocks
List of stocks that have higher probability of moving lower today.
Symbol	Description	Last	Imp Vol	IV / ATR %	IV_Percentile	Volume
CBOE	CBOE GLOBAL MARKETS INC COM	81.72	32.96%	15.68	19.13	1,947,884
CVS	CVS HEALTH CORPORATION COM	60.25	34.27%	16.38	17.72	6,810,115
BDX	BECTON DICKINSON & CO COM	240.28	35.50%	19.17	35.12	985,368
TSN	TYSON FOODS INC COM CL A	60.05	40.49%	15.63	20.37	1,320,396
CVX	CHEVRON CORPORATION COM	72.57	43.84%	15.95	21.70	8,727,161
PSX	PHILLIPS 66 COM	50.48	52.86%	12.98	26.06	3,291,382
LVS	LAS VEGAS SANDS CORP COM	50.68	54.82%	18.03	17.87	6,652,265
PXD	PIONEER NATURAL RESOURCES CO COM	85.54	59.51%	12.65	21.25	2,868,152
WYNN	WYNN RESORTS LTD COM	76.56	72.64%	19.88	21.37	2,143,255
BIIB	BIOGEN INC COM	265.00	87.98%	34.57	79.93	1,016,153

Low IV/IV-Percentile Stocks
These stocks have relatively lower Implied Volatility (IV) and IV Percentile. Under current vol regime, options on these stocks are relatively cheaper.
Symbol	Description	Last	Imp Vol	IV / ATR %	IV_Percentile	Volume
VZ	VERIZON COMMUNICATIONS COM	57.96	20.61%	14.56	9.02	12,879,556
TIF	TIFFANY & CO COM	123.54	21.80%	21.90	25.17	829,487
PG	PROCTER & GAMBLE CO COM	142.38	23.19%	14.73	10.11	4,278,287
JNJ	JOHNSON & JOHNSON COM	145.24	26.01%	15.13	14.42	4,154,372
PEP	PEPSICO INC COM	139.56	26.28%	16.28	17.33	2,758,507
ED	CONSOLIDATED EDISON INC COM	81.60	26.72%	15.24	15.61	1,473,627
CL	COLGATE-PALMOLIVE CO COM	79.34	26.91%	17.58	14.26	2,259,356
BRK/B	BERKSHIRE HATHAWAY INC COM CL B	212.71	27.32%	19.17	21.50	2,831,432
KMB	KIMBERLY CLARK CORP COM	136.88	27.53%	11.21	12.72	2,661,598
KO	COCA-COLA CO COM	50.52	27.58%	15.67	17.42	13,491,265

High IV/IV-Percentile Stocks
These stocks have relatively higher Implied Volatility (IV) and IV Percentile. Under current vol regime, options on these stocks are relatively expensive.
Symbol	Description	Last	Imp Vol	IV / ATR %	IV_Percentile	Volume
FFIV	F5 NETWORK INC COM	128.36	54.60%	21.44	46.27	844,684
JD	JD.COM INC ADR	81.34	54.70%	16.28	48.17	6,838,835
SPOT	SPOTIFY TECHNOLOGY S.A. COM	283.49	63.22%	18.86	55.48	1,350,242
SE	SEA LIMITED ADR	162.96	69.63%	14.74	54.00	1,841,154
PDD	PINDUODUO INC ADR	86.91	74.88%	15.68	69.00	2,829,657
FSLR	FIRST SOLAR INC COM	85.37	75.49%	13.36	56.28	2,368,619
DDOG	DATADOG INC COM CL A	102.08	78.41%	12.24	55.60	2,949,512
BIIB	BIOGEN INC COM	265.00	87.98%	34.57	79.93	1,016,153
PINS	PINTEREST INC COM CL A	53.00	99.03%	23.01	53.34	16,705,328
STMP	STAMPS.COM INC COM	256.56	100.98%	22.94	78.42	142,314

Screening Methodology - Strong Stocks Scanner

Everyday our Strong Stocks Scanner sifts through an entire universe of stocks traded on NYSE and NASDAQ. Some of the important parameters used to scan are:

Relative Performance of the stock vis-a-vis S&P 500 ($SPX) index is at least more than 10% in previous 52 weeks.
There are no corporate events such as earnings, major news etc in next 5 days.
Volume Weighted Average Price (VWAP) is increasing steadily over multiple time frames.
Frequency of higher lows is more than that of lower lows
VWAP and Lower highs has more weight than highs
Number of stocks traded previous day > 500,000
Number of options traded previous day > 500

Candidates screened with above criteria have higher probability of bouncing back on every pull back. Important word is probability. It is not a prediction.With these edges lined up, ATM call, though it has 50 delta will have higher probability of price appreciation. Our trading system/algorithm is heavily skewed towards capital preservation.

Screening Methodology - Weak Stocks Scanner

Some of the important parameters used for Weak Stocks Scanner are:

Relative Performance of the stock vis-a-vis S&P 500 ($SPX) index is at least less than 10% in previous 52 weeks.
There are no corporate events such as earnings, major news etc in next 5 days.
Volume Weighted Average Price (VWAP) is decreasing steadily over multiple time frames.
Number of stocks traded previous day > 500,000
Number of options traded previous day > 500

Candidates screened with above criteria have higher probability of going down on every reaction rally. Important word is probability. It is not a prediction. With these edges lined up, ATM put with 50 delta will have higher probability of price appreciation. Our trading system/algorithm is heavily skewed towards capital preservation.

Screening Methodology - Low IV Stocks Scanner

Some of the important parameters used for Low IV Stocks Scanner are:

Average Implied Volatility of options is less than preset threshold, which is in normal time <25%. However it is adjusted based on overall IV on all stocks and VIX.
IV Percentile is less than preset threshold (normally 40)
Number of stocks traded previous day > 500,000
Number of options traded previous day > 500

Screening Methodology - High IV Stocks Scanner

Some of the important parameters used for Low IV Stocks Scanner are:

Average Implied Volatility of options is more than preset threshold, which is in normal time >50%. However it is adjusted based on overall IV on all stocks and VIX.
IV Percentile is less than preset threshold (normally 80)
Number of stocks traded previous day > 500,000
Number of options traded previous day > 500