Finding a High Profit or High Probability Trade
One of the best reasons to use ODDS® Online™ is that it will help you in all stages of your research. ODDS Online helps you find a security that has trading potential, helps you choose the right strategy for the current volatility situation, and shows details about your profit expectations. In this portion of the Online Manual I will show you the process that I use to find a trade.
Stock
or Stock Index ?
ODDS Online is able to easily analyze any stock or stock index option strategy.
To begin, you need to select either stock or index. Simply choose from
the dropdown list stock or index, then proceed to ODDS Search Tools.
You can navigate to ODDS Search Tools by hitting the TAB key, or by
clicking in that particular field.
ODDS
Search Tools.
ODDS Online can do everything you need in order to trade options, including
finding stocks that are particularly attractive for certain types of strategies.
ODDS Online will find the stock for you, then it will find the
appropriate strategy, and then it will analyze the option prices.
Once you select
High Profit or High Probability, a table with a list of stock ticker symbols
will be displayed. The table has
three columns. By default, the
table is sorted in alphabetical order. In
the column to the left of the ticker symbol is the stock's closing price.
In the column to the left of the closing price is the average implied
volatility of the stock's options.
By clicking on any column header, you can sort by that particular factor.
For example, if you click on Impl. Vol., ODDS Online will sort on implied
volatility. From this list of stocks, select one by clicking on the ticker
symbol. Then either hit the ENTER
key, or click on the GET DATA button.
Immediately after hitting the GET DATA button, go to the Volatility
Expectation field.
Volatility
Expectation.
You are
now in the Volatility Expectation field.
After hitting the GET DATA button, you are always directed to this field.
Here, you simply select the volatility you expect.
If you are looking for a high profit trade, it is suggested that you
select the 100 DAY HISTORICAL volatility. If you are looking for a high
probability trade on a stock, it is suggested that you select the 1 YEAR
HISTORICAL volatility. If you are looking for a high probability trade on an
index, it is suggested that you select CURRENT IMPLIED volatility. You can
also choose OTHER and input your own volatility expectation.
From Volatility Expectation, go to Trade Duration by hitting the TAB key
twice or by clicking in the Trade Duration field.
Duration
You are now in the Trade Duration field.
ODDS Online
can look for trades of any duration. Once you've made your selection, go to the Type of Trade field by clicking in that field or by hitting the TAB
key.