Real options analysis
On this page you can find detailed information on the options screener created by the authors and partners of the OptionClue project and learn how to use traders screener every day.
A great number of assets in the financial markets become interesting for trading every day. For successful trading, you have to go through hundreds of assets and analyze them efficiently to get ready for trading. When it comes to options trading this process may take a long time. With this in mind, we decided to automate the process of market analysis so that you can find out how to trade stock options and make trading decisions with a clear head and quickly.
That resulted in creating a simple and reliable straddle and strangle options screener, which includes following indexes:
Sigma index is used in options and stock market trading and can be considered as options and stock screener. Sigma lets identify assets with high volatility (trends) and low volatility (flats and triangles). The higher Sigma index, the more actively the market moves at the moment.
Theta index – divides options into «cheap» and «expensive». Low index values indicate that it’s interesting to buy underlying options whereas high values indicate the attractiveness of selling straddles and strangles. Theta allows you just in minutes to identify stocks with the highest potential.
Alpha index – based on Sigma and Theta indexes suggests the general option’s attractiveness. Minimum values show the «cheapest» underlying options with the greatest movement potential. In this case, you should buy straddles or strangles. In my opinion it’s one of the best option trading strategy. Maximum index values indicate that selling of the underlying options is interesting since they have the lowest movement potential and high cost.
So, this screener simplifies the search for cheap or expensive options combinations and indicates which options to buy or sell. You can also learn how to build an investment portfolio and assess the efficiency of trading signals of OptionClue option screener.