Time Range Selection is important when picking the right options with the optimal strike prices because the profit often hinges on the stock reaching the strike of the option by certain time. Probability Calculator helps determine the optimal strike prices for placing options trades. Figure 10 shows that the target price of $47.16 for Dow Chemical is $47.16.

 

 

On the other hand, if you are bullish on the stock, you can see the probability of the stock reaching $54.54. If there is a 71.64% Probability of a stock reaching $54.54, and you are also bullish based on Tradespoon Analytics where Trend is 9 and Buy/Sell Rate is 8, then you can consider buying $47 call option. Strike Price selected is 47.


What if you are bearish on the stock? You might buy 55 put options because you know that there is a 71.64% Probability of the stock being between $47.16 and $54.54. Tradespoon will send you daily trade recommendations that includes the estimated move of the underlying asset and the expected price of the stock. Tradespoon Analytics also shows you day by day prediction of where the stock is going to be on the next day, the next 5 days, and the next 50 days.


A Directional Bias, whether Bullish or Bearish, is important and keep an eye on volatility. Normally, higher the Volatility, the higher the premium of the options and that will also help determine your Strike Price selection. Technical Analysis or Tradespoon Predictive Analytics take into consideration and help with better quantifying Risk, Volatility, and Strike Price Selection.

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I. Tradespoon 101

II. Advanced Options Strategies

The Greeks

III. Technical Analysis

Introduction to Technical Analysis

Oscillators

Chart Patterns

Reading Predictions

IV. Developing a Trading Plan

Portfolio Management

Review

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