How to select stocks using my MCC method?

Posted on June 1, 2015 by admin

Here is how I select stocks to invest.  Combining the stocks I traded or still hold with the new candidates by screening, I came up with a list of 16 stocks (I usually adjust the screening criteria to provide a manageable list of 15-20).

Stock Screening

The stocks that are of high ROI are listed on top of the table with 3 different strikes: ATM, ITM and OTM, for comparison.  There are a total of 6 such stocks to consider.

From Row 27 and down are list of stocks still with great but lower ROI.

Column M is the sum of ROI of the covered call + dividend yield.

*Stocks in capital letters with * are new candidates of my screening result with the following criteria: Div yield>5%, Beta>1, Price above 50 and 200 SMA, Sales growth over the past 5 years: >15%, optionable and the RSI is not overbought.

A bit more detailed analysis of 3 stocks of the top 6 will be provided separately.

About admin

Richard Cheng, M.D., Ph.D., is an avid Wall Street investor with 20+ years of investing experience. He is specially adept at observing the world to find the patterns and then design strategies to win his battle. Most, if not all, happenings in the world, follow certain patterns. These patterns may be complex, multi-factorial, not so intuitive at the first glance, or even may appear chaotic. However, even chaos has its own patterns. If you pay attention and be patient, you'll find them and then you will gain an upper hand in your battle. Using this blog space, he documents his trades and his thoughts as they happen. He uses this blog as a a notebook to help him better refine his strategies. Hopefully this will help you as well. Good luck in your trading.
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