Wealth Creation

Quite a few of the questions I’ve been asked in our survey the last day or so, have been regarding the process of selecting the best stocks for Options Trading, and how to actually go about creating a watchlist of the most profitable stocks.

Many of you are already familiar with the process we use, however just recently the ASX have changed their website, so you may now find it a little different when navigating your way to the relevant report.

Take a few minutes to watch this video as I run through the exact steps on the computer screen.

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We are specifically looking for the latest Historical ASX Options Data Report.

Once we have this PDF report open, we are only interested in those stocks that have a 3 letter code. Stock codes that have more than 3 letters are relating to other variants that don’t apply to us as options traders.

Of those stocks, we are specifically looking for the ones that have a total of 20,000 or more Lots Traded. That is, when you add the number of Puts traded with the number of Calls traded, the result is a minimum of 20,000.

This number indicates the liquidity of a stock. By trading stocks with high liquidity we have peace of mind knowing we can easily open and close any one position.

OK, that’s it for now. Be sure to post a comment below to let me know what you think and what you’d like to see next.

To your success

Jules