Optionistics Review 2018
Optionistics is a stock options trading tool provider that offers a wide range of charts, option calculators and access to market data. Stock and options traders can use the tools and market data to analyze US Equity and the index options market.
Optionistics has defined itself as the ultimate edge provider of option modeling and market analytics. Available tools utilize prediction and pricing algorithms which have been developed and refined by expert traders.
The option modeling analytics provider has also made available numerous screeners that give stock and option traders an edge. Not only do they have the ability of scanning the market but they help in identifying preferred option trades.
To access most of the features provided by Optionistics, users must register. First step – read the Terms and Conditions where Optionistics confirms that it is not a broker dealer. Once you have read the Terms and Conditions, check the available box to agree with the terms.
Second step – add your name, organization, email, forum nickname and password. Your email will be your Optionistics user ID. It will be used to access your account together with the selected password. Your Optionistics forum nickname will be used on the forum and should have 6 to 20 characters.
Remember, you cannot change the nickname. Before submitting the registration form, check the provided boxes to receive notifications regarding feature changes and the daily morning hot sheet.
Final step – submit the form, open your email, find the official email from Optionistics and click the link to activate your account.
Stock and options traders need market data in order to create trading strategies and make key decisions pertaining to trading. As a result, Optionistics provides several screeners that enable stock and option traders to filter financial instruments based on dividend yield, market cap and volume.
Other reasons for using a screener is to allow traders to find top gainers, all time highs and volatile stocks or whatever other criteria they are looking for.
The following are the available screeners offered by Optionistics:
52 week hi/low IV
Morning Hot Sheet
Optionistics utilizes a wide range of prediction and pricing algorithms to provide stock and option traders with accurate market data displayed on the morning hot sheet. The first pricing algorithm used by Optionistics is Black Scholes. Basically, it helps to compute option prices when dividends are not specified.
Other pricing algorithms include the Geske, Whaley and Roll. These are used only when a dividend amount and date have been specified.
The morning hot sheet is a web page that aggregates a wide range of market data from popular indexes, active stocks, splits, volatile stocks and calendar spread among others. It is divided into 4 sections:
End of day highlights includes popular indexes, active stocks, gainers, losers and splits
Stock and option volatility summary includes volatile stocks, expensive calls and straddles among others
Vertical spreads includes bull call spread, bear call spread, bull put spread, bear put spread and dividends
Open interest and miscellaneous spreads includes highest open interest, open interest change, contract change, calendar spread and diagonals.
Note: the above tools provide members with the option of accessing the latest data. This option is available to members who have subscribed to Optionistics. If you are a non member, you will have access to 15 minute delayed data.
Optionistics advanced screeners enable you to cut down on the number of available options and stocks to meet your specific criteria. Basically, the tools help you to weed out stocks and options that don’t meet your technical criteria. Optionistics offers 5 advanced screeners namely:
Butterfly spreads – as a complex options strategy, it consists of several legs namely the center and outer legs. The Butterfly spreads center leg is composed of two short near-the- money calls while the outer legs include 1 long out-of-the-money call and 1 long in-the-money call. Its objective is to enable traders to profit by collecting premium from the short leg.
Calendar straddle – the advanced screener displays data as a tabular report that lists the stock, stock price, strike, short leg, long leg, maximum profit, maximum loss, profit/loss and maximum IVol. Optionistics members have the option of specifying their criteria using available settings and filters.
Butterfly diagonals – Optionistics members will note that the Butterfly Diagonals advanced screener provides a similar tabular report like the Calendar straddle. Using the available settings, members have the option of selecting the desired symbol, the stock price, volume, leg volume, expiration and spread.
Iron condor – this advanced screener utilizes two vertical spreads namely a call and put spreads with four different strikes and a similar expiration. The generated report is available in a tabular format making it easy for members to scroll through.
Option traders have access to intuitive calculators that enable them to compute more than the theoretical price of an option. Traders also have the ability of computing more than 8 option contracts and a single stock position.
Available Optionistics calculators include:
Option Calculator – can be used to provide the effects of changes in the inputs as per the option pricing models. Available inputs that can be adjusted include price, strike price, volatility, yield and risk free interest rate.
Probability calculator- helps to estimate the probability of future prices. This is based on available market conditions or available user data.
Strategy Calculator – just as the name suggests, this is a stock option calculator that develops or defines certain parameters with the goal of developing a suitable trading strategy for a specific symbol.
New members have the option of subscribing to Optionistics using credit cards or PayPal. The subscription takes effects immediately payment has been received and confirmed. To access the advanced features of Optionistics, select one of the three subscription plans:
Standard subscription – $35 per month and $299 per year
Add historical data – $45 per month and $399 per year both with data plan
As a provider of stock option trading tools, Optionistics has availed to its members a wide range of wealth analysis tools, free of charge. They include volatility charts, option calculator, option chains, strike pegger and volatility. Rookies have the option of learning more about options, option pricing and related products using the learning center. It is available to both members and non members for free.
One downside of Optionistics is that it takes 3 days for payment via E-check to clear. Additionally, the stock options company does not offer investment advice and trading activity. You have to consult an experienced investment advisor beforehand.
Despite the above drawbacks, Optionistics offers accurate and reliable reports generated from end of day market data allowing option and stock traders to make trade decisions.