http://www.smartfunda.com/options-trading-systems.html
How do I find stocks that are going straight to the basement in the short term?
I trade options and I’m trying to create a system to find the very worst stocks to play with. The ones nobody wants that are doomed to get killed. How do you spot these terrible stocks? Where do you get information from?
It’s not easy. Some useful measures:
- very high price to sales ratios,
- very high or non-existent p.e. ratios,
- negative or slowing revenue growth,
- high debt to equity ratios, and
- ‘concept’ or ’story’ stocks; when the story fades the stocks tend to collapse.
So, is it time to short SBUX?
Options Trading System (3 of 3) by San Jose Options
