A new filter for MACD has been added to the PowerOptions Search tool for all strategies! This new filter (located in the Technicals tab) will allow you to search for stocks where the MACD is above or below the Signal Line and by how many days. You will also be able to screen for stocks where the MACD and Signal Line are above or below the Zero line. This filter will allow you to better screen for stocks with positive or negative momentum.
Timing your entry into a position using options is very important because time premium is continually eroding from the position. Ideally we want to enter a bullish position just as the stock is about to move up. It is not possible to know in advance when the move will occur, but we can get an early indicator once the move has started. There are several tools available to help the investor pick the best time to enter a position. One such tool, which has been recently added to the PowerOptions screener, is the crossing of a stock price above a moving average such as a 20 or 50 day moving average. Another form of this tool is to use the crossing of the 20 day moving average over the 50 day moving average as a bullish trigger.
Investors will scan charts looking for this type of crossing to trigger a buying opportunity. They also look for confirming volume as the crossing takes place, however, this effort can be very time consuming. Using the PowerOptions screener an investor can scan the entire market very quickly to find a first-time stock price crossing of a moving average. The parameter scanning form in PowerOptions to capture the moving average crossing is very simple to use: Read more »
Option investing can often be like “finding a needle in a haystack” – an investor knows there are good option trades out there, but finding them amongst the gazillion other “not-so-hot” option trades can be very difficult. That why over the last ten years or so PowerOptions has been developing tools to help option traders find “needles in the haystack” with less effort and with less time required.
In addition to developing option trading technology, PowerOptions has also been actively patenting its option investment related technology. PowerOptions’ latest issued patent may be viewed at this link.
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Ever say to yourself, “I wonder how well my option strategy would work if it had been used over the last year, two years, etc.?” Well, at PowerOptions, we asked the same question and then developed an option “back-testing” tools to answer the question – and we also got a patent for the technology. The details of the patent can be viewed at this link.
For example, suppose an investor wanted to know how well the Covered Call strategy would have performed over the last year using the constraints shown below:
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It’s easy to generate positive returns when investing in bullish markets, but quite difficult to generate positive returns when attempting bullish investing in short-term bearish markets. However, it is possible to generate positive returns when using bullish investments in short-term bearish markets. And, an actual profitable example will be given below explaining the concept.
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Apple (AAPL) is currently at the center of a large number of mobile patent lawsuits. The company is not merely intent on licensing its technology as International Business Machines (IBM), Microsoft (MSFT) and others. No, Apple seeks to go “thermonuclear” as Steve Jobs has been quoted as saying with the hopes of fending off competitors in court rather in the market place. Albert Einstein is quoted as saying, “I know not with what weapons World War III will be fought, but World War IV will be fought with sticks and stones.” In light of Einstein’s quote, maybe Apple should reconsider its thermonuclear posture, especially, considering the company ranked 39th on the list of companies awarded patents in 2011. No surprise, on top of the patent pile for 2011 was once again IBM, followed by Samsung and Microsoft. Before a company goes thermonuclear, it should at least have the best quiver of arrows. Maybe Apple thinks it has the “biggest arrow” that trumps all others.
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