The WON Watchlist
There is one WON rule that will help you get a better price on your options trades—a stock's options should have a bid/ask spread of less than five percent. When we trade WON (WON WATCHLIST) we are buying the at-the-money strike price, and we want to see a tight bid/ask spread. We calculate this by taking the difference between the bid and the ask and dividing that by the mid-price of the option.
For example, in the example below we can see that the PEP $170 Calls have a bid of $5.10 and an ask of $5.20. That's a .10 difference on a $5.20 mid-price option, giving us under a 2% spread (.10/5.20 = 1.9%.). That's a great options market to trade.
On the other side of the coin, let's look at GTLB. Here we can see the bid/ask spread is 4.30/4.60. This gives us a spread percentage of ((4.60-4.30)/4.45) 9%, which is far too large for trading. The cost of a large spread goes straight to your bottom line.
In order to make searching for suitable stocks easy, we've compiled a WON WATCHLIST that you can easily download into your own TradingView charts. When you follow the link you'll find a button for Save as watchlist. Click that, give it a name, and you're done.
When you've done that you can then click your watchlists name in the upper right hand corner to choose which watchlist you'd like to see. That's all there is to adding the Wanderer WON Watchlist to your TradingView charts.
