Finding wedges

[rishb]

I'm 18 and looking into learning how to trade options.

I came up with the following strategy:
- Find a stock that is currently trading in a wedge because implied volatility will be low
- Do a straddle trade
- Make money when the stock breaks the wedge and shoots in a certain direction

I want to try this strategy out in a virtual account but in order to do so, I first need to find a stock currently in a wedge.

Is there any quick way to find such stocks through a screener or through some other method? If not, do I have no choice but to keep going through a whole bunch of stocks until I find one that is trading in a wedge?

 

[traderlux]

Quote from rishb:

I'm 18 and looking into learning how to trade options.

I came up with the following strategy:
- Find a stock that is currently trading in a wedge because implied volatility will be low
- Do a straddle trade
- Make money when the stock breaks the wedge and shoots in a certain direction

I want to try this strategy out in a virtual account but in order to do so, I first need to find a stock currently in a wedge.

Is there any quick way to find such stocks through a screener or through some other method? If not, do I have no choice but to keep going through a whole bunch of stocks until I find one that is trading in a wedge?

finviz

 

[kinggyppo]

Quote from rishb:

I'm 18 and looking into learning how to trade options.

I came up with the following strategy:
- Find a stock that is currently trading in a wedge because implied volatility will be low
- Do a straddle trade
- Make money when the stock breaks the wedge and shoots in a certain direction

I want to try this strategy out in a virtual account but in order to do so, I first need to find a stock currently in a wedge.

Is there any quick way to find such stocks through a screener or through some other method? If not, do I have no choice but to keep going through a whole bunch of stocks until I find one that is trading in a wedge?

I would suggest getting a demo with think or swim, also they have a billion technical studies and a built in scanner, this will take some time to learn but you hopefully have some time to learn this....

https://www.thinkorswim.com/tos/displayPage.tos?webpage=paperMoney


http://www.youtube.com/watch?v=jXZcJojTucg&feature=related