MooMoo Options Screener Recap (Part 2)

Good morning, good morning, gooooood morning everyone and welcome back to another Options Screener Recap post! I hope all your options are in the money, portfolios in the green, and withdrawls ready to hit the routing number.

In the previous article we talked about what a Screener is, what the purpose of the Screener is, and the goal I want to achieve with the Options Screener. If you happened to miss that post, you can read it here:

Not only was this post featured on MooMoo, it has also amassed nearly 200,000 views! Almost hitting our all time record of over a quarter MILLION views I want to thank you all for that. As we (because I would't be here without all of you!) continue to grow larger and larger within MooMoo, I want to mention that I will always express my gratitude for those who interact with my posts, drop a follow, and those who just take the time to read my articles. Some take a LONG time to write, but you all motivate me to continue working hard, studying the markets, and write my articles.

I am not an affiliate with MooMoo (yet!) and therefore I don't recieve a dime for any of my work. I simply believe in one philosophy: What I know might help you and what you know might help me. Followed by "so lets make money" or something fun that ruins the serious point I am trying to make hahaha.

In todays article, I will be breaking it down into 2 parts.

- Total Options Activity Alerts: 25

- Total Call Activitiy: 24

- Total Put Activity: 1

- Total Charts: 18

In the previous Recap, I discussed some notes and trends I noticed as well as the fact I will not be focusing on Puts and only Calls. That remains the same for the Recap Part 2.

You can read the full notes in the original article here

I have created an Excel spreadsheet to track Unusual Call Buying that follow my rules, with the exception of some outstanding outliers. I have not included yesterday's Amazon call orders as they do not fit my criteria, however they are still important to observe. You can read them here

(This trade occured right before earnings)

- Total Charts: 35

- Total Trades: 39

- Total Profit: 21

- Total Loss: 10

- Total Neutral: 1

- Total Mixed: 3

% Profitability of Charts: 60%

% Loss of Charts: 28%

All other % undetermined

Each stock averages around 1-5 days to see results

Calls before earnings resulted in 100% win (not enough data to show that % will remain true)

Notable ETFs such as the QQQ and SPY have over a 50% chance of short term profitability. However the Qs did suffer more than the Spyders.

Technical analysis should be used to see if each trade was timely or off support to gague whether it is a trade worth following

Some of the Q calls were bought at the top, therefore technical analysis should be used

Furthermore, Bond ETFs should be avoided or approached with consideration about economic data relative to the time of a trade in any Bond ETFs

ETFs that track smaller sectors should be avoided as their results vary greatly

Most of the Calls on metals such as GDX or SLV saw quick gains followed by losses long term, or straight losses out the bat

I would avoid trades on metals unless there is outstanding volume or a reason to do so

Most of, if not all the trades recorded saw profitability within 1-5 trading days

However, those that saw losses also accumulated more losses from 1-5 trading days

A lot of the contracts ordered expire later on in the summer with a few extending further than that

Stock unusual Calls are the go to, ETFs only if they are larger ETFs with more liquidity than others are the runner up, Metals should be researched before taking a trade and stay away from ETFs with lower volume and liquidity

We had a mix bag this time around. The % of Profitability was not as close to the first post, however with more tickers tracked and the updates I have made to the screener it is clear to see that those numbers can change.

There are a few things I notice right away.

I also noticed that the contract order size does mattter. This should be well understood as no investor would spend thousands, or even hundreds of thousands, on a bet they think will lose. The larger the volume the more confidence a trader has. However, this should be compared to what asset the order is on, where the price is relative to supply and demand, as well as the date of expiration.

Overall, I am INCREDIBLY satified with a 60% win rate. Not every trade is going to see profit, and there are trades currently in losses which have more than enough time to reject to the upside. With my data, I can better see the trends of trades that succede and those that fail. I am going to make further adjustements to the screener to filter out assets that result in a higher rate of losses than those that don't and we should see a much higher rate of profitability.

Again, I will not be posting the settings for the screener because I still have more work to do, but also because I want to share it with all of you for the next Followers goal! However, I will still post Options Screener alerts For Followers so don't worry about missing out.

Speaking of which, we hit 1,300 Followers over the weekend and I am so grateful for it. Thank you for all the support and I hope to continue working on this screener and providing updates in hopes that one day it becomes a great source of research for finding a new trade.

Thank you again and I hope eveyone makes money this week