Trade Alert: The Most Selective Screen
A bullish bet on the only optionable U.S. stock that passed our "Really Time To Buy?" screen.
A Screen So Selective It Found One Name
Every now and then, one of our screens turns up a name not because it is the hottest stock in the market, but because it is one of the few that still looks attractively priced after a broad sentiment shock. Today’s stock comes from our “Really Time To Buy?” Chartmill screen, which is an extremely selective one. It looks for U.S.-traded, optionable stocks with a 5-year Price/earnings-to-growth (PEG) ratio at or below 1, next-year PEG ratio at or below 1, a technical-analysis score of at least 6, a setup score of at least 7, and a Piotroski F-Score of at least 8.
As of Tuesday’s close, this was the only stock in the entire universe of optionable U.S.-traded names that passed all of those filters.
A Cheap Stock In A Nervous Market
This one is a medical technology company trading at an attractive valuation. Part of that may simply reflect the market environment, with the Mideast war weighing on sentiment.
Our view is that this kind of geopolitical shock can create opportunities in smaller, overlooked names that were already inexpensive to begin with. And in this case, we can express that view with an options structure that gives us bullish exposure several months out, by which point we expect this war-related overhang to have lifted.
Full details below, including pre-set exit order instructions, so we won’t need to babysit the trade.
Today’s Chartmill Trade
Medical technology / value setup theme
