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.

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Conversions Are A Riskless Options Trade

option conversionConversions, 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 due to price changes in under a minute.

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: Read more »

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. Read more »

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.

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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 results. You can now start to further filter the results based on your own stock criteria and option criteria, or increase the range OTM or premium you’d like to pull in.

In addition to that we have a default ‘Weekly Naked Put Search’ that is available in the ‘Search Settings Saved As’ drop-down menu. This search includes All Weeklies, but anyone can quickly alter that Search by adding in the ‘2 to 9’ Days to expiration and then add in their own search criteria.

‘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? Read more »

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.

Can I add old closed positions to my PowerOptions portfolio?

Of course you can! With the PowerOptions portfolio tools you can track any number of positions for any number of accounts. They can be real accounts or paper-trading accounts.

We know that getting your PowerOptions portfolio “caught up” can be a hindrance to starting one at all – but, we strongly suggest that you just jump in and start tracking new trades as you put them on. Don’t worry so much about catching up the portfolio with all of your old trades. The benefit of using the PowerOptions portfolio tools to track your real and paper trades? Read more »

Timing Investments when Stock Price Crosses a Moving Average

Timing your entry into a position using options is very important because time premium is continually eroding from the position.  Ideally we want to enter a bullish position just as the stock is about to move up.  It is not possible to know in advance when the move will occur, but we can get an early indicator once the move has started.  There are several tools available to help the investor pick the best time to enter a position.  One such tool, which has been recently added to the PowerOptions screener, is the crossing of a stock price above a moving average such as a 20 or 50 day moving average.  Another form of this tool is to use the crossing of the 20 day moving average over the 50 day moving average as a bullish trigger.

Investors will scan charts looking for this type of crossing to trigger a buying opportunity.  They also look for confirming volume as the crossing takes place, however, this effort can be very time consuming.  Using the PowerOptions screener an investor can scan the entire market very quickly to find a first-time stock price crossing of a moving average.  The parameter scanning form in PowerOptions to capture the moving average crossing is very simple to use: Read more »

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