"We are also excited to introduce our new "fast" beta weighting within the thinkorswim platform to complement the traditional beta weighting calculation," Sherrod explains. "The calculation of fast beta uses one year of pricing data for the weighting symbol.This calculation is mathematically weighted such that more recent pricing behavior has a greater impact on the calculation than older pricing data. For example, NFLX has a traditional beta weighting of 0.77, while the fast beta weighting is 2.3. Momentum traders and long-term investors are really receptive of this new metric as a means of screening stocks."
TDAmeritrade can be followed on Twitter at twitter.com/TDAmeritrade
OptionsProfits can be followed on Twitter at twitter.com/OptionsProfits
EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.