Making this open source and includes an alert that you can set for your favorite stocks. I get browser alerts and alerts on my iphone/tradingview app.
DISCLAIMER: Do NOT follow this strategy unless you are aware of the risks of selling naked options.
1) I have identified 20 companies with 30%+ YoY revenue growth (using the most recent quarter) and minimum "average trading volume": NVTA,TWLO, ROKU, SHOP, MDB, SQ, AYX, NVDA, FSLY, VEEV, MELI, PINS, TEAM, RNG, TTD, HUBS, ZEN, etc. I like companies that fit this criteria because 30%+ revenue growth means their revenue double every ~2.5 year and their "market cap" is based on their revenue. 2) When you see a green "$" icon above a candle on a DAILY chart , that means it's a good time to "sell naked puts" using the solid green line as the approximate "strike price". I prefer 3-9 months until expiration and "stagger" my expirations so it's not possible for everything to be put to me all at once. 3) I use a "minimum premium" and "max contracts" that I sell that suits my risk tolerance, you will need to calculate your own contract size based on your risk tolerance.
*NOTE: This only works on a DAILY chart , and only works on the companies identified above -- if you are using intraday, weekly or monthly, the "$" signs do NOT appear.
RISK NOTE: I do NOT sell any naked puts unless I am 100% ready to own the shares AND have enough capital in my account if they are put to me, you should do the same. Don't follow this strategy unless you are prepared to OWN shares at expiration.
***HOW TO ADD TO YOUR CHARTS*** 1) Click the "Add to Favorite Scripts" button 2) Go to a stock chart and click the "Indicators" icon at the top 3) Next, on the left, click the "Favorites" and then click the "Naked Put - Growth Indicator v2" 4) It should appear on your charts, and you can click the "gear" icon on the study to edit a few settings. 5) Read the release notes above so you understand how it works.
Thanks @MattDeLong for making this scrip public, much appreciated indeed. in implementing this strategy do you prefer that the price be above or below the thick green line (i.e sell naked put when ITM or OTM)...or it doesn't matter since seeing the $ sign indicating possible upward trend in the coming days anyway...
MattDeLong
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@hhomsi8, price can be above or below the green line...ideally sell a strike as low as you can to get the minimum required 1% premium per month...
Trade_with_ICE
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Thanks Matt... whats the difference of the first one. Anyway ive sent you a few messages for permission for the first Naked put script. Any chance that you can grant me access to that? Thanks Matt
MattDeLong
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@iceman600, TradingView changed their plans some time ago and to share the old indicator -- I have to upgrade my account to PREMIUM (currently PRO) the previous version and I'm not ready to do that yet. This is the same indicator with a few small bug fixes...
This is one of the best indicators I've found, thanks Matt. Does anyone know how to set an alert when the stock price hits the green line (down 25% from it's high)? I would like to be alerted when that happens and then take a shot at some trade ideas. Thanks.
Carlopiranha
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Thanks for sharing that to the community, I think if you hold enough cash on the account and you are ready to own the stock you may use the term cash secured put instead of naked put. Anyhow, any suggestion on the option expiration date? I assume less than 30 days the better...
MattDeLong
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@Carlopiranha, the DTE depends on what you are comfortable with...this indicator doesn't matter if you are using naked puts or cash-secured puts -- only you and your broker know which is which....the market doesn't know any difference.