Baskets of stocks are at the core of this guide, which highlights how one of MenthorQ’s dedicated users, Simon, uses the Options Screeners to trade groups of names rather than single securities. In this post, we’ll break down how he builds and manages baskets of stocks and ETFs using MenthorQ’s tools.

Check out the full video below.

Baskets of Stocks: Creating Baskets using MenthorQ Options Screeners

Simon began leveraging MenthorQ’s screeners after participating in a MenthorQ Trading Challenge. The challenge sparked the idea of creating macro collections of stocks and ETFs, using the data provided by MenthorQ. By focusing on institutional levels such as put support and gamma changes, Simon started constructing baskets of equities that aligned with institutional strategies.

To manage these baskets, Simon uses Fidelity’s basket tool, which allows him to automatically equal-weight stocks and ETFs. This helps him manage risk and track performance across multiple assets with ease.

He begins with an initial investment in a basket, usually around $10,000. Once the basket increases by 5%, he sells most of the position—typically around $9,500—leaving him with discounted shares. This strategy allows him to reallocate capital to new baskets while keeping his risk low.

One of Simon’s key tools is MenthorQ’s Put Support Screener, which helps him identify stocks nearing key levels. This screener provides a list stocks that are close to the put support levels, making it easier for him to develop a clear plan.

Key Takeaways:

  1. Focus on Institutional Levels: Simon’s success stems from his focus on institutional data like put and gamma levels, which offer strategic entry and exit points.
  2. Diversify with Baskets: By mixing stocks from different industries, Simon minimizes risk and creates balanced portfolios.
  3. Leverage MenthorQ’s Screeners: The daily updates from MenthorQ’s screeners provide Simon with fresh trading ideas and valuable insights.
  4. Aim for Small, Consistent Wins: Simon’s “Rich Dad, Poor Dad” strategy helps him lock in gains regularly while keeping his risk low.