Before I ever put on a trade, I run every potential ticker through a simple but strict filter. It’s fast, it’s efficient, and it keeps me out of trouble. I’m not interested in trades that might work — I want high-probability setups with the right conditions for the weekend.
So when I start scanning, I’m not just looking for charts that look good. I’m eliminating anything that doesn’t meet my criteria in just a few seconds.
And trust me — most tickers get tossed out immediately.
What Gets Cut First
The first thing I look for is liquidity. If the options aren’t liquid, it’s a nonstarter. That took names like SWTX, TFC and CRM right off the list last week. The spreads were too wide, or there just wasn’t enough open interest to make the trade worth it.
No liquidity means no trade — I don’t waste time trying to force something that won’t fill cleanly.
I also filter out stocks that are too directional. If a chart looks like it’s breaking out or breaking down, I don’t want it. I need tickers that are stuck in a range with no clear bias.
That’s what makes them ideal for neutral spreads. Stocks may catch my eye on a chart, but if they carry too much headline risk or are trending too strongly, I’m out.
How I Zero In on the Right Names
After knocking out the illiquid and the directional stuff, I zero in on stocks that are not only range-bound but also disconnected from weekend news risk.
Palantir, for example, gets eliminated fast because it’s super news-driven — and that kind of surprise headline is exactly what I want to avoid.
What I’m really looking for are tickers that drift quietly, have tight bid-ask spreads, and show stable behavior going into Friday.
Let’s say DHI and LEN both fit that mold, but between those two, I’d compare liquidity and movement side by side. The one that has slightly better options makes the final cut.
This fast filter process saves time and prevents me from making emotional decisions. If a ticker doesn’t meet my exact standards, I move on.
No guessing. No second chances. That’s how I stay focused — and how I find the best weekend setups, week after week.
Kane Shieh
Kane Shieh Trading
Follow along and join the conversation for real-time analysis, trade ideas, market insights and more!
Important Note: No one from The TradingPub team or Kane Shieh Trading will ever contact you directly on Telegram.
*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. Why Is Wall Street Pulling Money Out of a Rallying Market?
The market has risen around 20% over the last few weeks but Wall Street hasn’t bought into it yet…
What are they seeing that we’re not?
