Company Name: Perceptron Inc
Stock Ticker: PRCP
Outlook : Bullish
Strategy : Long Calls
I came across Perceptron Inc a few weeks ago. I used the screener tool at FINVIZ.com Typically I trade ETF’s like SPY, IWM, DIA, or GLD because they are more liquid, but occasionally I use the screener tool to find trading ideas.
I wanted to find a stock that I believe is undervalued, and is going to really pop in the future. I typically set my screener options to search for the following criteria
- Country – USA
- Option / Short – optionable
- Price – Under 15
- Return on Assets – positive
- Returnon Equity – positive
- Return On Investment – positive
- Debt / equity – Low
Then I look for something that has some volume. It isn’t really that technical, I feel that sometimes all those lines get in the way.
I decided to purchase 4 out the money calls. They expire January 2019, strike price of $17.50. I don’t typically buy out of the money options, but every once in a while, I like to buy what I call “Lottery Ticket” trades. I call them that because they have a low probability of expiring in the money, but you have to play to win.