What is Upside Breakout?

A short-term signal that ranks stocks or ETFs by their potential for significant price gains. Stocks with high Upside indicate investors expect good returns, which, along with other signals, can make for a good long-term bet.

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How to Use Upside Breakout 

Upside Breakout ranges from 0 to 100 and can be examined for a certain stock or an aggregation of stocks such as ETFs.

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A High Upside Breakout (80+) indicates higher demand for positive bets in the long-term options markets, favorable analyst coverage, and positive price momentum. This, in turn, indicates a high potential for significant price gain in the next year.

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An Upside Breakout (20 or less) indicates a lower chance of such gains in the next year.

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A Low Downside Breakout rating does not necessarily mean a high Upside Breakout. A stock can be positioned to have a lower chance of gains without having a higher chance of losses. 

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For example, a Biotech stock could be viewed by the market as having a low probability of a clinical trial success. So if the trial is a failure the stock might not move much because that failure is said to be priced in but if it was to succeed that could make the price move rapidly upward.  

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Update Frequency for Upside Breakout

Upside Breakout updates every 2-5 minutes. Even though it updates as much as Net Options Sentiment via options pricing dynamics, unlike Net Options Sentiment it contains other information outside of the options markets. Meaning it is vital information but does not move as sharply.