Option Strategy Screener

Here is the strategy screener I was referring to in my earlier post. This screener is an essential part of the OptionPundit’s Toolbox and I encourage beginners to use it to have an understanding of different option trading strategies before diving into option trading world beyond straight calls and puts.

This screener from option industry council has more than 40 strategies listed and explains it very well. It tabulates whether a particular strategy is suited for bullish, bearish, neutral or sharp move market outlook. Here is the snapshot of the “strategy lists” from the screener Strategy List

The screener then goes one step further and provides more details of a strategy in an interactive way. Click at any strategy of your choice and it will take you to separate screen that provides details of that strategy with a pictorial view. Here is a snapshot of short iron condor –> ShortCondor Explaination

Notice the buttons at the top that provide more information when you click at these buttons. For instance, I chose short iron condor strategy and then clicked at description. It precisely described what a short Iron condor is. This screen also shares with you how Greeks and other variables impact short iron condor strategy. At the same page it also lists your maximum loss or profit scenarios. RUT Simulation

Check out a small button at the bottom “launch interactive analysis”. By clicking at that button, you will be taken to a “position simulator” that has flexibility to let you select options you want to design short iron condor for. There are several input filters that allow you to customize the condor. For instance, I customized it for Russell 2000 (RUT), short 850 call, 760 put and long 860 call and 750 put for March 2007 expiration. Play with the simulator a bit more and find out maximum loss and profit for your trade. BY changing implied volatility, or stock price via bottom toolbars one can visualize how profit/loss curve changes.

Now let’s talk about cost- If one learns these strategies via “seminars” or so called “secrets of massive wealth, money making in a jiffy”, etc., one might be paying thousands of dollars. Since money is made even by just sharing these basic steps, this free simulator or screener is not widely publicized. OptionPundit is always in search for tools that are available for free and let its reader enjoy the basics of options trading at the minimal cost. Save those valuable dollars for something of higher value which will help you move up in the amazing world of option trading.

Here is the link to the strategy screener, it’s under “My toolboox” category and is titled “Options Startegy Simulator”.

Hope you liked it, do let me know your thoughts in the comments section, OptionPundit

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5 Comments

  • Reno says:

    I love the scanner. Thanks for the tip!

  • Dominic Basulto says:

    These option strategy screeners are really helpful in understanding how the Greeks impact the value of an option position, even with something as basic as a long call. Great job with the explanation and screen shots!

  • optionpundit says:

    Thanks Reno and Dominic.

    Profitable trading,
    OptionPundit

  • Barry Brown says:

    Need to design or get a screener for writing put options. Been doing it manually now for over a year – with very good results >100%. knock on wood, of course the market has been very good.
    Barry

  • Ben says:

    Free options screener is also available at oscreener.com
    There is also a cool strategy backtesting feature, however not all option strategies are supported

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