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Options are considered one of the most flexible financial market instruments. In this era of global volatility where financial markets keep on changing, options allow traders to adjust their positions based on new information available in the markets. So, investors these days often perceive options as a prudent investment tool as it permits portfolio diversification besides increasing their profitability.
Options Trading has become increasingly popular these days. However, most options traders face difficulty in selecting the appropriate options trading tools and thus succumb to losses. If you are searching for such tools to ease your options trading journey then this article can help you as we will be discussing the top 12 options trading tools.
Top 12 Options Trading Tools You Need In 2022
Options Profit Calculator is a very good online calculator used by many to determine the future price behavior of a contract or spread. It houses powerful tools that help the options traders to select the appropriate options trading strategy that can actually fetch them their target profit without getting out of their comfort zone. This platform aids in comparing different options trading strategies side by side at a time and thereby helps in choosing the one that fits both the user’s as well as the market’s sentiment. Additionally, one can also see their expected ROI on any given day from their unique ROI table.
OptionStrat is another powerful tool that aids in creating appropriate options strategies by providing app-based trading signals for the options investments. It has some wonderful features that help in seamless options trading. Its strategy visualizers help in finding and editing options trading strategies on a real-time basis by helping the user get a visual understanding of the trades and thus letting him get a glimpse of the potential gains or losses that strategy would lead to. It also has a strategy optimizer that automatically calculates a strategy just by giving a target price and expiry date.
Market Chameleon provides options information using both stock fundamentals and options analytics thereby giving better insights to the options traders who wish to take more well-informed decisions. Options data and analytics like option chains, options greeks, open interest, and sentiment triggers are not readily available to individuals and firms with limited resources but are very crucial for building proper options trading strategies as they contain forward-looking indicators necessary for strategy building. On Market Chameleon, one can find such important information which is usually focused on three major time horizons: Forward-Looking, Present, and Historical. Also, information about unusual volume, Covered call Screen, Upcoming Earnings Calendar, IV Rank, etc. Can be found.
Swaggy Stocks contain simple yet analytical tools that help options traders understand the market sentiment and make options trading strategies accordingly. Determination of options trading strategy critically depends on the price point at which the stocks would reach upon the expiry of the options and this platform helps in determining those price points using options max pain theory which is also called option strike pinning. On visiting their strategy room, one can also get access to watchlists that contain all the required data in one place or can also create custom watchlists where real-time stock price updates, earnings dates, options IV, analysts’ ratings, price targets, etc are shown.
Golden Sweeps is another amazing website that uses tools to monitor the totals for calls and puts in the financial market with a specific focus on the contracts and their volumes. It has a different approach for determining the unusual options contracts available in the market. It does not display the contracts individually to avoid the small volume sweeps that can derail the ultimate investment goal. Also, the contract information provided here is totally genuine as it is updated on a real-time basis. Executing options trades are made easier with the help of charts and tickers.
Waffles Finance is an educational options strategy visualization tool that helps options traders in building their options trading strategies. It is an advanced options calculator and trade journal. It simplifies the complex options trades and helps the options traders in understanding their own bets so that the traders can take more well-informed decisions. It has several useful features like automatically building strategies, building strategies from scratch, reposition strategies just by a click, finetuning strategies by swapping individual options, visualizing profits or losses at any point in time with the help of charts, and tables, and so on.
FT Options Wingman is another helpful tool that uses proprietary volatility surfaces and industry-leading pricing inputs to provide accurate theoretical values and Greek calculations to the options traders which they usually require for building suitable options trading strategies. It also helps the options traders to price the options and spreads and analyze their trades using volatility analytics and other important information. Wingman has declared recently that is coming up with more functionalities market summaries and volatility and analytics visualizers to further enhance the options trading strategy building process.
Recently launched in April 2020, FD Scanner is an excellent research tool for options traders. This scanner can be used to easily filter and scan over 10 million options by 26 metrics which include implied volatility, Greeks, Percentage OTM, etc. Options traders can improve their efficiency in finding the ideal options for hedging, trading, or premium trading to a great extent by using this tool. Traders can also use their Tendies Index and Skew Index for finding underpriced options or use the unusual activity scanner to track down the moves by big players. Interestingly it has a mobile-friendly version as well.
TendieChart is an amazing place for options traders. Over here options traders can track the price history of the various options contracts before making any investment decision. It also gives an idea about the unusual options volumes, upcoming earnings, a position scanner regarding WallStreet bets, and the newest options chains that are being added. All this information is of immense importance for options traders while framing appropriate options strategies as these are the prerequisites for forming a well-informed options trading strategy that can mitigate losses to a great extent.
Options AI offers several charts and interactive tools that display information like data about past performance besides providing the future price and outcome expectations from the options market data. The most highlighted aspect of this platform is that it offers Options traders instantly receive options trading strategies within a click itself upon entering some personal inputs. It also has some other interesting kinds of stuff like real-time expected move charts, live visualization of the options market for providing actionable insights to the traders, intelligent strike selection, and instant strategy generation within a click itself. Additionally, some other advanced features like Edit strikes, payout visualization, and dynamic trade management are also available.
Option Sonar helps options traders find, monitor, and follow the largest order flows in the options market across all stocks having the highest daily volume compared to open interest. It lets the options traders scan the entire order flow from every US options exchange so that they can get ahead of the market and know when big options trades with high liquidity are underway. Additionally, it provides email alerts as soon as any unusual activity is detected, gives a summary of the latest option contracts that are being traded by sentiment, has a sweep scanner that shows large orders that are split across many smaller trades for major ETFs & individual stocks and also help in discovering trades that take place outside the main exchanges.
Plot Lion has various options toolkits and short squeeze trackers to discover new trading opportunities at the earliest. It has an options scanner that lets the options traders scan through thousands of potential contracts based on their required metrics. The short squeeze scanner would also let to sort stocks by short interest or by the number of Reddit mentions. It also has an Options Strategy Analyzer which lets options traders visualize their trade strategy based on metrics like the chance of profit. Thus, with all this information traders would understand the potential upside and downside of the market before buying any contract and therefore can maximize their profits.
Options trading is risky as it is a form of leveraged investment. Many times, the risks are unforeseen and cannot be easily quantified. Therefore, it is a must to have complete knowledge before indulging in making trades. The above-mentioned tools are just meant to ease the decision-making process.