DISCLAIMER: Do NOT follow this strategy unless you are aware of the risks of selling naked options.
1) I have identified 20 companies with 30%+ YoY revenue growth (using the most recent quarter) and minimum "average trading volume": ZEN, TEAM, BABA, SHOP, RNG, SPLK, NFLX, FB, WIX, SQ, MULE, WDAY, MU, HUBS, ABT, LOGM, NEWR, NVDA, MELI, AMZN, NOW. I like companies that fit this criteria because 30%+ revenue growth means their revenue double every ~2.5 year and their "market cap" is based on their revenue. 2) When you see a green "$" icon above a candle on a DAILY chart, that means it's a good time to "sell naked puts" using the solid green line as the approximate "strike price". I prefer 3-9 months until expiration and "stagger" my expirations so it's not possible for everything to be put to me all at once. 3) I use a "minimum premium" and "max contracts" that I sell that suits my risk tolerance, you will need to calculate your own contract size based on your risk tolerance.
*NOTE: This only works on a DAILY chart, and only works on the companies identified above -- if you are using intraday, weekly or monthly, the "$" signs do NOT appear.
RISK NOTE: I do NOT sell any naked puts unless I am 100% ready to own the shares AND have enough capital in my account if they are put to me, you should do the same. Don't follow this strategy unless you are prepared to OWN shares at expiration.
Notas de prensa
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added a few tweaks
Notas de prensa
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Changed some defaults and fix a few small bugs
Notas de prensa
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Jul12 2018: Fixed a few issues with the calculations..
Notas de prensa
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Updated version of the naked put indicator.
1. I don't hardcode any tickers anymore, got too many questions about that. 2. There is a blue line (10% pullback) & green line shaded area that draws the 10-25% pullback zone to sell premium which price action is in that zone. 3. The green line is the strike price where you sell the options.
I like this Matt! Wish i knew of this earlier!! It would also be a good indicator that if the stock ever reaches that green line to buy long term calls!
MattDeLong
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@Rcadan88, My strategy assumes it's unlikely to reach the green line.
sri199
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@MattDeLong, can you grant me access to this indicator?
MattDeLong
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1) Click the "Add to Favorite Scripts" button
2) Go to a stock chart and click the "Indicators" button at the top
3) Next, on the left, click the "Favorites" and then click the "Naked Put Growth Indicator"
4) It should appear on your charts, and you can click the "gear" icon on the study to edit a few settings.
5) Read the release notes above so you understand how it works.
jonahbeer1
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Hey Matt, I learn't a lot from your videos about naked puts and trading on real life trading and would love to use you indicator, if you would allow it? Thanks
MattDeLong
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@jonahbeer1, permission granted. please read the notes on how it works (and the settings you can change).
akirpalani
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Hi Matt- I am going thru the RLT video now, may I request permission to use the indicator..thanks!
MattDeLong
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@akirpalani, just shared it with your username, please read the notes on how it works (and the settings you can change)
akirpalani
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@MattDeLong, thank you, received it and much appreciated that you would take time out to help us.
could you clarify the following-
1) the screener that you use on finviz is the " sales growth past 5 years" or " sales growth qtr or qtr" to identify
revenue growth over 30%
2) just to confirm that the screener only works for the stocks that you have identified in your notes?
every qtr, does the stock selection change?
thanks
Arun
MattDeLong
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@akirpalani, no, TradingView doesn't have a way to calculate revenue growth, so i have to update the list manually.