EVIDENCE BASED TRADING – Dr. James C Krider
May 26, 2017.
Dr. James Krider creates a monthly stock lists consisting of quality momentum stocks with associated weekly options. A stop loss and maximum position size is calculated for each stock. ALL trades are entered and managed with options. For stocks we want to control we purchase a CALL at or near the stop loss with an expiration of 3 months. Our excess cash is put to work selling PUTs for income on a one to two-week basis with a minimum annualized gain of 20%. To view the current portfolios, go to Dr. Krider’s momentum stock universe.
To follow all actual and pending trades, subscribe to our premium service. If you would like Dr. Krider to manage your account simultaneously with his own call 760-242-1234.
Disclosure: I am long CALLs in AAPL, AMAT, ATVI, AVGO, BA, BABA, BAC, BAX, CC, CRUS, ETN, FB, JD, KO, MAR, MSFT, MU, NFLX, SWKS, TMUS, WDC, and YHOO. I am short PUTs in AMAT, AVGO, BABA, BAC, BBRY, ETN, FB, HLF, JD, RH, SWKS, and WDC.
I have NO current stock positions, only options.
Three-month chart: The current regression channel, blue, is increasing above last weeks, red, and the MA60 is 12.81 degrees. The rate-of-change (ROC) is 3.22% (momentum = 9%). RSquared is 0.429, significant is 0.80.
One-month chart: The current regression channel is increasing relative to last week’s channel. The RSquared is 0.364 (statistical significance is 0.8) and the ROC is 2.27% (momentum = 3%). The MA20 is 28.65 degrees.
Technical analysis is bullish for short- and long-term; neutral for intermediate.
Overall: We are back in a bullish technical market with rising rate of change and RSquared. We will continue to play aggressively.
NEXT WEEKS PLAN
I am already in most of the CALL positions I want at this point. I have created June’s momentum list and will add a few new momentum stocks to my long CALLs. I am now roughly 80% in cash that I can use to sell weekly PUT positions. My CALL options now control a stock portfolio worth over 120% of my actual portfolio value.
The premium service has all my option trades that you can follow in real time. Dr. Krider is also available to personally manage your portfolio, call 760-242-1234 for more information.
James Krider, MD
Dr. James C Krider is a practicing family physician in Apple Valley, CA.
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