As we approach options expiration you need tools to properly track, evaluate and manage your options positions. All of this can be done using the Portfolio tools on PowerOptions. You can quickly create and enter new or existing positions into the Portfolio tools. Once a position is entered you can set Alerts to be notified when profit targets are hit or when losses may need to be managed. As you track your positions you can link to the Position Analysis tool to see your current liquidation and future expiration values as well as view various roll out opportunities for your positions. As you are viewing potential Roll Out Opportunities you can link to the Trade Simulator tool to see the before and after profit and loss graph of your current position compared to the potential adjustment. This video shows just how easy it is to enter positions into the Portfolio…
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5 Keys to a Successful Option Spread Trading Plan
The key is likely to first develop a trading plan for your spread positions in conjunction with the tools on PowerOptions. A trading plan may consist of: What are my goals for monthly or annual income? What exposure am I willing to risk in the market? Should I look for lower probability trades with a higher return, or higher probability trades with a lower return and higher risk vs. reward ratio? What is most important in your trade selection: The underlying security? Minimum option premium? Volatility? % Return or % Annualized Return? % Probability? Difference in strike prices (risk on the trade) Time frame for an open position (weeklies vs. standard expiration). Detailed Exit Strategy, including what is an acceptable loss vs. management techniques in various situations. This may sound like a lot to cover but once you map out a trading plan the pieces will fit together regarding: What…
Your Own Personalized Investment Newsletter with Personalized Investment Ideas by Email
The tools at PowerOptions are used by self-directed investors to develop a set of screening parameters that find stock and option combinations which meet your specific investment criteria and risk/reward tolerance. Once your personalized search criteria are developed and tested, the search can be implemented and applied anytime to produce your results – just logon anytime to see your search results. If getting logged into the site for your results is ever inconvenient, we also offer your search results by email. Just like a newsletter service, your investment idea results are sent to your e-mail INBOX every day as your personal opportunity list. Note: If you like the results you see from the PowerOptions built-in default search criteria, you can get those results by email as well.
Conversions Are A Riskless Options Trade
Conversions, if you are able to receive a credit, are no risk options trades with a very limited reward. One example of a conversion is: Buy shares of SLV @ $18.73 Sell JUN 18 call @ -$ 1.08 Buy JUN 18 put @ $ 0.34 Net Debit = $17.99 Guaranteed exit/assignment = $18.00 Guaranteed Profit = $ 0.01 ADVANTAGES: 1. Possibility for a no-risk trade 2. Credit is received 3. Management is not necessary 4. Opportunities can easily be found with PowerOptions DISADVANTAGES: 1. Guaranteed Profit is extremely limited 2. After commissions limited profit might turn into a loss 3. Due to low profit, 1,000s of shares may need to be traded which hinders the retail investor 4. Opportunities may appear, then disappear quickly. I found this trade on PowerOptions, but by the time I linked to the profit and loss chart the trade showed a guaranteed loss of -$0.04…
Stock Insurance OR Portfolio Insurance – Revisited
With the addition of new and interesting securities to help hedge a stock portfolio, the question arises more and more: ‘Is it better to insure my stock directly or use a different hedge to insure my portfolio?’ This is a very important question which has many components to it. During a PowerOptions Open Forum Webinar on January 14th, 2014 this question was posed. The actual question was:
MORNING UPDATE: PriceWatch Alerts for BA, TSLA, AAPL, and More…
MORNING UPDATE: PriceWatch Alerts for BA, TSLA, AAPL, and More… February, 11 9:00 AM ET – PriceWatch Alerts for BA, ATVI, MNST, TGT, YPF, TSLA, DISH, BLK, MMM, RIG, AAPL, NPSP, GM, X, Market Overview, News Leaders and Laggards, Today’s Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for BA, ATVI, MNST, TGT, YPF, TSLA, DISH, BLK, MMM, RIG, AAPL, NPSP, GM, X, DLTR.
Weekly Options Crash Course for Options Expirations
When the weeklies were initially offered on standard stocks, you would have only the next week out option. The new option would be released on Thursday morning prior the current weekly option expiring on Friday.
3 Quick Tips to Find Weekly Naked Put Options on PowerOptions
When I create a Search for Weekly options I start by: Click ‘Clear These Settings’. This will empty all the filter settings. Select ‘All Weeklies’ as your Options Expiration Time Frame. In the ‘Days to Expiration’ filter field enter a range of ‘2’ to ‘9’. This will filter out the options that have 1 day left to expiration but include the ones that expire 8 days away and will work for any day that you run your search. Enter in basic criteria for premium and return. Examples (not suggestions 🙂 ): Option Bid 0.15 to ____ (or your preference) % Naked Yield 0.5 to ___ % Out of Money 0.5 to ___ (or 1 to blank) Earnings Date – Not Between Now and Expiration Remember to keep your search criteria simple and basic at first when looking for weekly options. Once you submit that search you should see your desired…
‘Signature Tools’ Tab Added to PowerOptions Navigation
PowerOptions has added many great tools for options traders over the years. Not all of them perfectly fit into the “strategy” navigation theme that we use. As a result, some of the best tools we offer have been obscured from obvious use. Our latest update to the site has been to gather up all of these tools and put them in one place for easy access. – The SIGNATURE TOOLS tab… What might you find there?
Filter for MACD added to the PowerOptions Search
A new filter for MACD has been added to the PowerOptions Search tool for all strategies! This new filter (located in the Technicals tab) will allow you to search for stocks where the MACD is above or below the Signal Line and by how many days. You will also be able to screen for stocks where the MACD and Signal Line are above or below the Zero line. This filter will allow you to better screen for stocks with positive or negative momentum.