EVIDENCE BASED TRADING – Dr. James C Krider
May 26, 2017.
Our portfolio rotation into long calls and eliminating all current stock positions has paid off handsomely. The portfolio has surged back to nearly 20% YTD putting us on track for a 40% annualized return in 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, AMZN, AVGO, BABA, BAC, BAX, CC, CRUS, ETN, FB, JD, MSFT, MU, NFLX, SWKS, TMUS, AND WDC. I am short PUTs in VMW, NTAP, MU, and MRVL.
I have NO current stock positions, only options.
Three-month chart: The 3-month remains flat. The current regression channel, blue, is increasing and the MA60 is 10 degrees. The rate-of-change (ROC) is 1.44% (momentum = 9%) and the RSquared is improving, but still not significant at 0.27.
One-month chart: The current regression channel is increasing relative to last week’s channel. The RSquared is 0.115 (statistical significance is 0.8) and the ROC is 1.52% (momentum = 3%). The MA20 is 24.
Technical analysis is bullish for all time frames.
Overall: We are back in a bullish technical market with raising rate of change and RSquared.
NEXT WEEKS PLAN
I am already in most of the CALL positions I want at this point. I will be creating June’s momentum list and will add any new momentum stocks. Otherwise, I will continue to sell weekly PUT positions.
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.
Dr. James C Krider is an Investment Advisor Representative licensed in the state of Nevada and is President of Krider Wealth Management, an Investment Advisory corporation based in Nevada.
These comments were prepared by James Krider, MD, an investment advisor representative of Krider Wealth Management, LLC, a Nevada state registered investment advisor. The information herein was obtained from various sources believed to be reliable; however, we do not guarantee its accuracy or completeness. The information in this report is given as of the date indicated. We assume no obligation to update this information, or advise on further developments relating to securities discussed in this report. Opinions expressed are subject to change without notice. Opinions of individual representatives may not be those of the Firm. Additional information is available upon request. The information contained in this document is prepared for general circulation and is circulated for general information only. It does not address specific investment objectives, or the financial situation and the particular needs of any recipient. Investors should not attempt to make investment decisions solely based on the information contained in this communication as it does not offer enough information to make such decisions and may not be suitable for your personal financial circumstances. You should consult with your financial professional prior to making such decisions. PAST PERFORMANCE SHOULD NOT BE CONSIDERED INDICATIVE OF FUTURE PERFORMANCE. ANY INVESTMENT CONTAINS RISK INCLUDING THE RISK OF TOTAL LOSS. This document does not constitute an offer, or an invitation to make an offer, to buy or sell any securities discussed herein.