Strikes: Options Paper Trading 1.3.9

CALCULATOR:

• Analyze the probable outcomes of options strategies using a real-time calculator and strategy-builder:
  1. Performance metrics: Probability of Profit, Max Gain & Min/Max Loss.
  2. Risk metrics. The so-called “Greeks”: delta, gamma, theta, etc.
  3. Strategy builder. Generate options strategy based on expectations about the price move.

CALENDAR OF KEY EVENTS:

• Keeping abreast of upcoming significant events likely to impact prices considerably:
  1. Earnings calls. Impact nearly all listed companies with stock prices prone to significant fluctuations based on whether results exceed or fall short of expectations. Options prices typically decline post-announcement due to reduced uncertainty.
  2. FDA decision announcements. A pivotal event for pharmaceutical companies where the impact is more substantial for smaller firms highly reliant on the specific drug/treatment under FDA review.
  3. SPAC-related events. Special Purpose Acquisition Companies (SPACs) have a to-be-announced event schedule that could profoundly influence the company’s future.

MARKET VIBES/SENTIMENT:

• Through analyzing options prices, a clearer insight into market sentiment can be gained, bypassing external noise:
  1. Stock/ETF price direction. Implied volatility skew analysis reveals if the market values more calls or puts, indicating the likelier direction: upward or downward.
  2. Move magnitude. Judging expectations about the move by analyzing options prices: higher options prices suggest a larger expected move.
  3. Future volatility. By assessing options prices across various maturities (expiration dates), predicting whether the market anticipates a decrease or increase in volatility.

DISCLAIMER:

Options trading carries inherent risks and may not be suitable for all investors. Strikes is not a registered investment advisor. The calculations, information, and sentiment in this app are solely for educational purposes and are not considered investment advice. Calculations are estimations and do not encompass all market conditions and events.

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