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It’s a simple answer: A resounding yes.
Option Alpha is an online platform that provides software tools that help you optimize options trading. Founded by Kirk du Plessis, a former M&A investment banker, and REIT analyst, Option Alpha equips traders with straightforward yet potent trading tools, making their trading journeys seamless.
As an options trader, you can conduct research, backtest strategies, and configure automatic trades to enhance your trading experience. The cherries (using plural here) on the cake are their 100% free educational resources that will empower you to become a better trader. The platform is good for both options trading and stock trading.
Option Alpha Review 2023
Option Alpha Review: Is it Worth Your Money in 2023
Review Summary
Education: Options trading is quite challenging. Option Alpha offers many educational resources, providing ample opportunities for individuals to learn about options trading thoroughly. And, as the site says, these resources will be free forever.
Automated trading: Once you have educated yourself on options trading, the platform allows for algorithmic trading of options while providing advanced research tools to facilitate thorough investment analysis. It doesn’t matter if you go long on options trading or you are into day trading, Option Alpha can be optimized for both styles.
Below is a detailed review of the site:
Education
The platform offers a variety of resources, including video tutorials, podcasts, articles, and blogs. The education resources cover a wide range of topics, including options trading basics, advanced trading strategies, risk management, and technical analysis. You will learn how to trade here.
The Courses section starts with Guided Tracks. They are divided into Beginner, Intermediate, and Advanced sections. You can learn at your own pace. The Beginner level teaches you the basics of options, entries, exits, and options expirations. You’ll understand what a put option and call option mean. The Intermediate course explores bullish, neutral, and bearish options strategies. The Advanced course looks at portfolio management, pricing and volatility, and trade adjustments. By the end of the courses, you’ll know what an iron condor and an iron butterfly are is or what a strangle is or what is an option premium means.
Next up on the board are 36 of the most popular Strategies. Options traders can buy or sell various options contracts, allowing them to customize their positions. You can design options strategies to benefit from price movements in a particular direction or stock prices remaining within a specific range. These strategies range from single-leg options to more complex positions, which include both long and short options.
The Topics section of Option Alpha’s education segment is called Trader’s Handbook. The site says it is “Your new “go-to” digital encyclopedia for clear, non-subjective answers to all things trading.” This is not a lie. The most important part of the Handbook is the section on Trading Psychology. Trading can be studied and learned, but mastering your psychology ensures that you have a better chance of success.
Option Alpha also offers a podcast series hosted by Kirk Du Plessis. The podcast covers various topics related to options trading, including market analysis, trading psychology, and risk management. The podcast is an excellent resource for traders who prefer listening to content while on the go. It’s a goldmine of investment advice.
Automated Trading
Option Alpha offers automated trading bots that use proprietary algorithms to analyze market data and identify potential trading opportunities. These bots are designed to execute trades automatically based on predefined criteria, such as market trends, technical indicators, and user-defined parameters.
There are three automation types that tell bots what to do and when:
- Scanners: Scan for new opportunities
- Monitors: Manage existing positions
- Events: Triggered on a schedule or when some other action happens
Option Alpha bots are designed to trade options contracts based on specific criteria, such as strike price, expiration date, and implied volatility. Option Alpha’s bots can be customized to fit your trading preferences and risk tolerance. You can set specific parameters for your bots, such as the amount of capital to be invested, the number of trades per day, and the types of trades to be executed. The bots can also be programmed to adjust their trading strategies in response to changing market conditions.
A significant advantage of using bots on Option Alpha is their ability to process large amounts of data quickly and accurately. Bots can analyze market data from multiple sources, including news articles, social media, and financial reports, to identify trends and patterns that human traders may be unable to detect. This can lead to more informed trading decisions and better overall performance.
You can best utilize the Option Alpha bots by using the platform’s Autotrading Video Tutorials for bots. The videos are well-produced and easy to follow, making it easy for traders of all skill levels to understand the concepts being taught. The videos cover various topics, from basic options trading concepts to advanced strategies like straddles and strangles. Additionally, the videos are organized by topic and skill level, making finding the content most relevant to your needs easy. You can optimize for profits here and also hedge your trades using bots. Auto trading was never this easy.
Option Alpha includes long equity (stock) and risk-defined options strategies, including long debit spreads, short credit spreads, iron condors, and iron butterflies. Calendars, diagonals, straddles, and strangles are currently not supported.
Using bots well will protect your downside risk and reduce the chance that you will lose money.
Option Alpha offers a paper trading engine with every account by default. This allows you to test your ideas and strategies within your Option Alpha paper trading account before live trading. Option Alpha places importance on backtesting and strategy research and has built its platform to backtest option strategies and quickly create a bot from a backtest. This allows you to focus your time and attention on testing and comparing backtests more swiftly and efficiently to create new bots from those backtests. When you use these backtests efficiently, your trades have a higher probability of turning profitable. You can speculate less and back your trading strategies with solid, actionable data.
As a trader, you are now educated and have backtested your strategies. You know how to trade. You are ready to start trading options now. While Options Alpha does not provide brokerage or direct portfolio management services, it lets you link your external trading accounts to it. You can execute trades directly through Option Alpha. However, the actual trade is executed in your broker’s account. Online trading just got more sophisticated! Now, you have a real shot to make money trading.
Option Alpha has partnered with the top brokers in the industry. As a bonus, you get exclusive commission-free trading when you trade with Option Alpha. This is a boon to people who don’t want to pay trading commission.
It’s very easy to open an account with Option Alpha. There are multiple packages you can choose from at Option Alpha. The cheapest one is the Basic package is $29.95 a month or $286.2 a year ($23.85 a month). The most premium is the Pro+ package, which is $199.95 a month or $1919.2 a year ($159.95 a month).
If you connect a Tradier Brokerage account with at least $2,000, Tradier will cover the cost of an Option Alpha Pro+ plan on your behalf. This promotion is valid until at least December 31st, 2023.
Other broker integrations include TradeStation, TD Ameritrade, Interactive Brokers, tastyworks, E*Trade, Ally Invest and Robinhood.
Bottomline: Option Alpha can be an excellent platform for anyone looking for backtesting tools or strategy automation.
This Options Discord Chat is The Real Deal
While the internet is scoured with trading chat rooms, many of which even charge upwards of thousands of dollars to join, this smaller options trading discord chatroom is the real deal and actually providing valuable trade setups, education, and community without the noise and spam of the larger more expensive rooms. With a incredibly low-cost monthly fee, Options Trading Club (click here to see their reviews) requires an application to join ensuring that every member is dedicated and serious about taking their trading to the next level. If you are looking for a change in your trading strategies, then click here to apply for a membership.