Chaikin Analytics has partnered with OptionsPlay.com to offer Options strategy capabilities that align with the Chaikin mission of "reducing information overload" in the investing process. OptionsPlay distills complex stock Option chains into a small number of strategy alternatives that maximize your risk/reward potential, given a Bullish or Bearish sentiment on the stock.
OptionsPlay will automatically populate a simulated Trade ticket with information about your selected strategy, for you to enter into your trading system (though it will current not enter the trade for you).
OptionsPlay functionality is included in the Chaikin Analytics WebApp application as a part of the service, for no extra charge.
Once you have entered a valid stock into the Chart, press the Options button in the chart header:
Disclaimer. The first time you do this, you will see a Disclaimer to acknowledge. Press "I Agree" to continue.
Video Walkthru. Next, you will see a Video Walkthru of the OptionsPlay window. You can watch it or return to it any time on the chaikinanalytics.com/Resources page. It is also accessible from the Settings (gear wheel) menu, under OptionsPlay/Video Walkthru. Press "Continue to Application" to see OptionsPlay.
The OptionsPlay window will automatically populate with suggested strategies about the stock you are viewing.
You can also select a stock in the Watchlist, or enter a symbol in the Symbol Entry Box while the OptionsPlay window is open.
Stock Header & Sentiment
At top you will see a Header with basic stock quote information, and Trend sentiment from OptionsPlay.
Below that you can set an overall stock sentiment with the "I'm Bullish" or "I'm Bearish" links. Initially, these will be set automatically based on the Chaikin Power Gauge Rating for the stock.
Based on the selected sentiment, OptionsPlay will suggest 3 strategies:
1. a Buy or Sell of the underlying shares of the stock
2. a Put or Call of the underlying shares of the stock
3. a Vertical Call strategy - typically one that will reduce the price of the long call and usually has a higher return if the upper strike price is met.
If you like any of the suggested Strategies, press "Trade" to see a Trade Panel populated with information necessary to execute that Strategy:
Other Strategy Info
Scroll down to see 5 tabs of other useful supporting information:
- P & L Simulator
- Plain English Strategy description
- Trading Range Simulator
- Risk and Investment Calculator
- Strategy Editor
Press "Income" to see suggested Covered Calls or Short Puts, which can be used as income generating positions.