Finding Your Top Options Trade Has Never Been Easier
When used correctly, options provide robust potential thanks to their incredible leverage. But this creates a double-edged sword situation. While we can see that $1,000 options play turn into a $5,000 payout, we can also see it go to zero. When used recklessly, traders don’t have to worry about the old saying of “death by a thousands paper cuts.” That’s because options trades have the potential to deal just a few lethal blows to those who use them inappropriately.
But therein lies the potential for investors. Have a plan, limit your risk, backtest your strategy and respect the market. If traders do that, they’ll significantly increase their odds for success when trading options.
That’s exactly what Option Party is here to help with. We want to provide the tools necessary to making traders more successful with options. That goes from start to finish, too. Everything from choosing the proper risk/reward probabilities, to scanning new strategies, and now thanks to Portfolio Manager, users can test their automated options trading strategy right here on the platform as well.
While Option Party is here to help with all of those ambitions, some long-time users may be curious about the new layout while new users who recently joined Option Party may not know the old look too well. However, we want to make sure none of the platform’s features are slipping past users.
Screening Trades With Option Party
The login process remains the same, where users find themselves on the “Dashboard” page once logged in. However, next to the familiar “Screeners” tab is a new one, “Portfolios.” We’ll get to Portfolios in a minute, but first let’s touch on Screeners.
The Screeners page still looks the same, but instead of going to the screener setup page, users will find that clicking on a specific screener will land them right on the trade results page. The trade results page looks familiar at first, with trades sorted by Option Party’s trade ranking system.
However, the process of tweaking these screening methods has become much simpler under the new layout. Want to tweak the probability of profit or target return? Simply click on the “Entry” drop-down. Need to add an additional options strategy to the screener? Simply click on the “Strategies” dropdown.
From there, users still have plenty of screening options. Under the “Stock” dropdown, they can adjust the outcomes by P/E ratio, dividend yield, earnings growth, market cap, volume, the 52-week highs and lows, and a plethora of other options. The “Options” dropdown let’s us toy with delta, implied volatility, expiration and strike prices (how far in- or out-of-the-money the trade is).
The look is a lot cleaner and it’s a lot simpler to make minor adjustments and fine-tune the various strategies.
When users click on the the “Details” button for a particular trade, they also get a clean look at the specific security. As you can see below, selecting the “Stats” tab gets a number of details, like 52-week range, market cap and volume. The “Financials” tab gets P/E ratios, dividend yields and the like.
Start a Portfolio With Option Party
Last week we introduced our new tracking feature, which allows users to select specific trades out of the trade screener and quite literally track their performance in a portfolio. To find it, head back to the top of the Option Party platform. Sandwiched between “Dashboard” and “Screeners” rests the “Portfolio” tab.
While this page is broken down in much more detail here, we will touch on it here. This is where users can see how their tracked trades are performing. What’s the benefit of this? Knowing how our strategy performs over time is paramount to knowing whether the strategy will succeed in real-world trading.
What looks good on paper may not be good in the real world. That is to say, maybe we’ll find that our strategy is too risky. Perhaps we are using options with too long of expiration or can drastically improve our win percentage by tweaking the implied volatility screener. Or maybe it will validate our screening process and give us the confidence we need to apply it to our real-life trading strategy.
That said, Portfolio Manager does more than that. Users can set their own portfolio rules and construct their own strategies while adjusting entry and exit conditions. Go from ASAP entries to time-specific, delta-specific, volatility-specific (and more) entries. Users can alter their exit plan by gains, losses, time and much more. Set specific portfolio criteria and even select the pricing methods (midpoint vs. market pricing). Users can then tweak their portfolio to improve their results and see how ready it is for real-world implementation.
All of this is to say that, the new-look Option Party is here to simplify the user experience and bring even more power to users’ trading strategies.