Accessing Options Play
Once you have entered a valid stock or ETF into the Chart, press the Options button in the chart header:
The first time you do this, you will see a Disclaimer to acknowledge. Press “I Agree” to continue.
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. 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. These ratings don't neccessarily match Chaikin's Ratings for a given stock. Make sure you check a strategy in line with your objectives.
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.
Pressing the Modify button on any of the three strategies will allow you to modify the specific trade. OptionsPlay allows you to fully customize the trade to your preferences. This includes changing the expiration and strike prices for each leg collectively or individually.
OptionsPlay defaults to displaying the Bid/Ask price for each leg as if you placed a market order. By clicking Bid/Ask, OptionsPlay will display the mid-price between bid and ask, which is a good target for your limit order. Depending on the size of the spread this could greatly impact your premium and OptionsPlay score.
If you prefer to analyze a different option strategy, click the drop down next to "Strategy Constructor" to pick a different strategy.
You can also manually add legs by clicking "Call", "Put", or "Stock" below.
If you like any of the listed Strategies, press “Trade” to see a Trade Panel populated with information necessary to execute that Strategy or Modify to change Strike Price, Expiration Date, Action, or Type.
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 Calculation
- Strategy Editor
Press “Income” to see suggested Covered Calls or Short Puts, which can be used as income generating positions.