| Strategy Rankings | |||||||||
| This page helps you decide which strategies are most appropriate depending | |||||||||
| on your sentiment on a particular stock and what it's volatility environment is. | |||||||||
| You have to select four intial choices | |||||||||
| 1) Which stockmarket is your stock in. | |||||||||
| 2) What is the stock ticker of your stock | |||||||||
| 3) What market direction do you expect the stock to take | |||||||||
| 4) What is the implied volatility IV environment (is the IV relatively, high, | |||||||||
| low or moderate compared to the past?) | |||||||||
| Once you have selected these the drop down list Desired Strategy will | |||||||||
| give you a list of appropriate strategies. | |||||||||
| 5) Select the one you are interested in | |||||||||
| 6) Select a trade sorting method | |||||||||
| 7) Then press go | |||||||||
| On the next page a top ten ranking is shown, with the relevant option data | |||||||||
| being shown over two tables 'Risk & Greeks" and 'HV & IV' | |||||||||
| 8) Select the hyperlink over the option series combination which you find interesting. | |||||||||
| The following page shows a table at the top showing option data regarding your | |||||||||
| chosen option combination/strategy. The two charts below show the stockprice chart | |||||||||
| and a profit/loss chart. | |||||||||
| Profit/Loss Chart | |||||||||
| The X axis (horizontal) show the profit/loss line, a negative value means a loss, a | |||||||||
| positive number means a profit. Zero on the X axis is your breakeven point. | |||||||||
| The Y axis (vertical) is the stockprice. This chart has the exact same range as the | |||||||||
| stockprice chart. This means that you can use the two charts together to see if there are | |||||||||
| support or resistance levels close to breakeven points shown on the Profit/Loss Chart. | |||||||||
| You can also select a minimum and maximum stock price (Y-axis) to zoom in on | |||||||||
| important areas of the Profit/Loss Chart. | |||||||||
| Note: | |||||||||
| The strategies chosen by the computer have been filtered with daily volume | |||||||||
| and open interest criteria. This has been done to ensure that option strategies | |||||||||
| are liquid (have enough volume) enough to provide reliable data. | |||||||||
| This may lead to illiquid stocks do not have a complete top ten ranking or | |||||||||
| no rankings at all due to volume being too low to provide reliable data | |||||||||
| . | |||||||||