Strazza and I have been having fun discussing options stuff on Twitter Spaces over the past few weeks. Even our friend Brian Lund (@bclund) has been contributing mightily to the conversations.
The topic of discussion has mostly centered around 0-DTE – or daily expiring – options and some experimentation I’ve been doing in this very active corner of the options market. While I will continue to talk about that, we decided we want to broaden out the topic material to include anything else we’re seeing that we can trade with options.
We’ll discuss trades we have on, trades we might be considering entering or anything else that feels topical in the world of options.
During the calls, we like to encourage audience participation. One piece of feedback I’ve heard from a few of you is that you don’t know how to actually participate. “Where’s the button to raise my hand?”
Just because some (most) investors choose to ignore it, doesn't mean that moves in stock prices are random.
They're not.
Stock prices trend.
It's just math. Or science maybe. Or both, I don't know.
But they do trend. This we know is a fact.
And since last June, the majority of stocks have been appreciating in price. And very few stocks have been falling in price, to the point where there are almost no stocks that are still falling.
So if stocks were not going up in price in this environment, that would be really weird.
From the Desk of Steve Strazza @sstrazza and Alfonso Depablos @Alfcharts
This is one of our favorite bottom-up scans: Follow the Flow.
In this note, we simply create a universe of stocks that experienced the most unusual options activity — either bullish or bearish, but not both.
We utilize options experts, both internally and through our partnership with The TradeXchange. Then, we dig through the level 2 details and do all the work upfront for our clients.
Our goal is to isolate only those options market splashes that represent levered and high-conviction, directional bets.
Welcome back to Under the Hood, where we'll cover all the action for the week ended March 31, 2023. This report is published bi-weekly and rotated with The Minor Leaguers.
What we do here is analyze the most popular stocks during the week and find opportunities to either join in and ride these momentum names higher, or fade the crowd and bet against them.
We use a variety of sources to generate the list of most popular names.
There are so many new data sources available that all we need to do is organize and curate them in a way that shows us exactly what we want: a list of stocks that are seeing an unusual increase in investor interest.
It's a list of the most important stocks in the most important country on the planet.
Find me a better index.
You can't. I've looked.
And when you look underneath the surface at the components of the Dow, you'll notice that its Advance-Decline line is pressing up against all-time highs.
From the Desk of Steve Strazza @Sstrazza and Alfonso Depablos @AlfCharts
Our International Hall of Famers list is composed of the 100 largest US-listed international stocks, or ADRs. We’ve also sprinkled in some of the largest ADRs from countries that did not make the market cap cut.
These stocks range from some well-known mega-cap multinationals such as Toyota Motor and Royal Dutch Shell to some large-cap global disruptors such as Sea Ltd and Shopify.
It’s got all the big names and more--but only those that are based outside the US. You can find all the largest US stocks on our original Hall of Famers list.
The beauty of these scans is really in their simplicity.
We take the largest names each week and then apply technical filters in a way that the strongest stocks with the most momentum rise to the top.
Based on the market environment, we can also flip the scan on its head and filter for weakness.
Let’s dive in and take a look at some of the most important stocks from around the world.
