I am searching for stocks that have wide daily range of at least $10 or more …
Finding such stocks, I will buy calls or puts, depending on the direction the stock is moving that day …
The question is how to find such stocks that will fulfill these criteria?
I consider two variables
Difference in days high and low: Range = Day’s High – Day’s low
I have observed that stocks with the following characteristics :
High Beta (> 3) has higher ranges.
Stock price has to be high enough to have a range (> $100).
Avg. daily volume has to high (> 1 million).
Options volume has to be large as well.
Stock must have some movement (last volume > avg. daily volume) for the day to be traded.
Some of the stocks listed below have come close to my criteria:
SPWR, FSLR, POT, BIDU, PCU, RIMM, RTP, PTR, CEO, FLR, CLB, SNP, HDB, FWLT, EQIX, UBB, DECK, DE, AAPL, DO, WBK, BG, RIG, MA, CMI, ISRG, SPW , SU, PKX, WYNN, GOOG.
Although they are all well know stocks, and could be considered as momentum stocks as well in today’s market (that is not the reason for me to trade them).