Anyone else here use Esignal's Option Analytix? Option Price Software for thin stocks?

R

RabidTrader

Hi, I have Fidelity, Etrade, Schwab's, OptionX, Option House's access to all their software and feel like I am drowning in all this data. My basic style is buying stocks or shorting them that break-out or break-down during the trading day.

Example is trading BGS since the news they were buying Green Giant and other brands from another company. To me that's easy(I bought the $35 Calls in all months that were reasonable plus physical stock average($35), I don't know how to trade advanced methods like many of you MBAs do. The hardest thing to do is sticking with things that work and often during Market weirdness we begin to change what's worked for us for years to some new stupid style that end's up wiping out our weeks, months, or year's gains because we got bored in a stick and unstable Stock Market.


Does anyone here use Esignal's Option Analtix and if so, how do you get it to tell you how to bid on stock options with radical spreads?

I was bidding on both EXR and SSS, the spreads are wild on their December and March Options, like $1.20 x $8.00, how do you valuate stock options you like? Thank you so much and helping me get the most out of all these costly software.
 
RabidTrader said:
Hi, I have Fidelity, Etrade, Schwab's, OptionX, Option House's access to all their software and feel like I am drowning in all this data. My basic style is buying stocks or shorting them that break-out or break-down during the trading day.

Example is trading BGS since the news they were buying Green Giant and other brands from another company. To me that's easy(I bought the $35 Calls in all months that were reasonable plus physical stock average($35), I don't know how to trade advanced methods like many of you MBAs do. The hardest thing to do is sticking with things that work and often during Market weirdness we begin to change what's worked for us for years to some new stupid style that end's up wiping out our weeks, months, or year's gains because we got bored in a stick and unstable Stock Market.


Does anyone here use Esignal's Option Analtix and if so, how do you get it to tell you how to bid on stock options with radical spreads?

I was bidding on both EXR and SSS, the spreads are wild on their December and March Options, like $1.20 x $8.00, how do you valuate stock options you like? Thank you so much and helping me get the most out of all these costly software.
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May I know what you can gain from a wide spread? Technically you are buying expensive and selling cheap in wide spread option, and in theory you still need to hedge on the other side which mean you have to long and short in the same time.

There is no guarantee the spread will narrow down in future for thinly trade product.

PM me if you prefer to chat in private.
 
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You will have to look at the volatility skew and the forward curve of implied volatilities. Then, determine the price of the option that would fit that market IV level.
 
Thank You Craig, I need to learn how to sell spreads and widen my horizon, my option skills are not good! Thank you and Xandman for helping me!
 
At best, understand the pnl of the option through time at various underlying prices and volatilities.

Spreading just optimizes your exposure.
 
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