An Option Watchlist Is Critical

So many of the option traders I work with ask me how to find the best trading opportunities. Without an options watchlist, I believe many traders are just searching aimlessly for opportunities. The key is to keep the list active and updated without letting it get so big that it does not help anymore. Having a watchlist that is fluid gives you the best chance.

Finding Trading Opportunities

As traders we have so many different scans and services at our disposal it could make your head spin. The thought of having the best candidates at your fingertips can be quite exciting, but it can be a little overwhelming too. Now by no means do I mean to say you should never use them because I use a few myself. But truth be told, probably 75% to 80% of my option trades come from a small list of candidates I have used for quite some time. By keeping a tight list I know at some point I will have an opportunity. It may not be today, tomorrow or even next week, but I know there will be an opportunity at some point if my list is well constructed and thought out.

I have found if I keep a list of about 10 to 20 stocks, I can recognize opportunities where I can put the odds on my side more easily. Instead of looking everywhere and rushing to the next great opportunity, I can zero in and have better results. Some of the stocks that make up my personal watchlist are Tesla (TSLA), Apple (AAPL), Amazon (AMZN) and Meta (FB), just to name a few.

Keep Your List Active

As I mentioned above, that does not mean I cannot take or find a trade outside my watchlist. I just need to be careful and not let the list grow so big that I cannot track all the potential opportunities. Keeping it fluid by adding or subtracting symbols at times is very important. Trust me, in the past I kept adding and never subtracting and it did me no good. Too much is not a good thing when it comes to a watchlist, in my opinion.

Be Patient

Being fluid also means being patient. There will not always be a great opportunity every single day (but there usually is) from your watchlist. But truth be told, many more times there will be numerous opportunities. The key is to keep the list active and take advantage when an opportunity presents itself.

John Kmiecik

Senior Options Instructor

Market Taker Mentoring

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