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By Ilene is an intriguing new trading signal service developed by John F. Ehlers.  Ehlers is a veteran trader and author of Rocket Science for Traders. The StockSpotter service analyses over 3,000 stocks daily, gives you daily short-term buy/sell signals in advance, and then tracks its subsequent performance. It’s features include:  

1.  Precision – Exact entry and exit timing for both long and short positions.

2.  Simplicity – Easy to learn. 

3.  Accountability – 100% tracking and simulation of all trading signal performances. 

4.  Team Work -- StockSpotter and you.  Join forces in this time-saving approach to trade selection. While StockSpotter performs the analysis, you select the trades, manage position sizes, and, perhaps, design appropriate option strategies.

Because StockSpotter provides daily ideas for going long or short specific stocks, it is complementary to option strategies used routinely at Phil's Stock World. Its trades last for 10 days or less. The strategies employed are typically the outright buying of a long call (put), or a bull (bear) call spread (also known as a vertical spread), with one or two months until expiration.

For technical details, Dennis D. Peterson's article in 'Technical Analysis of Stocks & Commodities' magazine explains more about how the system works:

What’s different and remarkable about the site is its openness about their performance. As you will see, equity curves and Monte Carlo simulations demonstrate how successful StockSpotter is in recommending trades. You can expect an average profit of 3.34% per trade using the highest-rated recommended trades. The maximum time of a position is 10 trading days. Alerts to exit a position may come earlier.

It’s not simple, but it’s all coded up and therefore the same algorithms are applied every day. At the heart of this system, the code wants to find trend retracements and locate the point where price will start to move with the trend again.

It starts with looking at all North American optionable stocks and eliminating those that do not meet minimum price and volume requirements. What the algorithms are looking for are stocks with a statistically interesting price. A probability density function (Pdf) is used to find a price that is statistically interesting, meaning it is at an extreme, and for StockSpotter, this means one that is at a three-sigma value.

Read more here

StockSpotters daily signals for when to go long or short a specific stock can be used as a premise for constructing options trades using option strategies such as those taught at Phil's Stock World. As Peterson notes, the trades are for two weeks or less, and a basic option strategies work very nicely with these quick trades, e.g., "an option strategy might be to buy a vertical spread two weeks before expiration with the buy leg at-the-money and the sell leg for a few dollars more." 

For the Phil's Stock World special 30-day, 30 dollar trial plus a 20% discount, be sure to use promo code PSW6922 if you sign up.