Click HERE to watch a 15-minute video on how the Historical Tools on PowerOptions can solve your back-testing needs! This discussion came from a Coaching Session with Bob, a PowerOptions Customer. Bob wanted to see how he could ‘…determine the best historical Delta selection for calls when buying SPY LEAPS.’ Well, the Historical Tools will help us with that. What Are The Historical Tools?: There are 3 main Historical Tools on PowerOptions: Historical Chain. Look up the Option Chain on any stock, on any date back to April 2006. You can then move forward or backwards, to see the price and criteria change day by day. Or, move from one month to the next and beyond to see the change in price. Historical Search By Symbol: Select a Strategy (in this case, Long Calls). Select a Screen date back in time and then select the Expiration Time Frame. The Historical…
Tag: historical data
How did my option pricing lose $1.00 when there was little to no change on the stock?
Earlier today I received a call from a PowerOptions subscriber. He is the owner of a far out in time put option on MOMO and the stock was up about $0.35 in the morning (Stock MOMO, at $25.76 from $25.41 at close on FEB 14th). The put option he purchased was the 2017-JULY 30 strike. At close on FEB 14th the bid-ask spread was listed at $6.60 to $7.20 – figure a mid-point price of about $6.90. Note: A wide bid-ask spread is not uncommon for options that are far out in time and not actively traded. When he looked at his brokerage account this morning, it showed a value of $5.90, down -$1.00. But the stock had only moved up +$0.35. The delta of the put option was about -0.60, and increase of $0.35 in the underlying should have dropped the put price by only -$0.24. So, what gives?…
Back-Tested Picks of the Day: Only the best 2 or 3 Trades Matching our Winning Criteria
Introduction Just about 20 years ago I created the patented PowerOptions tools to trade my personal account after I retired from HP. At the time I wanted a better way to search across the universe of options based on my stock AND option criteria in a given strategy… I wanted a one-stop tool to simultaneously search though stock technicals, stock fundamentals, market sentiment and option data… something that was not available in 1997. The PowerOptions tools became a huge time saver – rather than pouring through articles and stock reports to find stocks that matched my sentiment, then pouring over options chains to find a combination that matched my goals, all of this was now accomplished with a few clicks. Over that tenure, the stock and options markets have seen many changes: New trade ideas are touted with the promise of unrealistic returns New securities pop up, ETFs, ETNs, Binaries…