For an options strategist, especially when the Implied Volatility is low, the strategy should be to select Expiration Months anywhere between 50 to 75 days. When Implied Volatility is high, like when there is a binary event or any other uncertainty in the market, you probably will have a smaller Time horizon, but still between 30-50 days.
In order to be a successful trader, you have to know which stocks to trade, develop a directional bias and, come up with estimates for Support and Resistance levels. Tradespoon develops and provides you with technology that help predict the trend and select corresponding Options Expiration Cycles.
Tradespoon will forecast the Stock Price’s Trend, Turning Points, Movement Vector’s Direction, and ‘Buy-Sell’ signal with significant accuracy for both a Short and Long Term investment strategy. Here’s an overview of some of these tools:
• Seasonal Charts
These charts can estimate the potential move in the Short Term. It can show you what our predictions are for the next 10 days, and also show you how the price of the stock will behave this year and in the future, based on historical information. It shows the Correlation between the current and past prices.
• Probability Calculator
This tool uses in-the-money options prices to determine estimated move for next 50 days.
• Stock Forecast Toolbox
This tool can provide insight into Day High and Day Low for next 50 days and thus helps determine how to manage your positions.