HOW TO USE THE TOOL

What is this tool?

You enter the stock option trade data in the data entry fields. It then uses the criteria feilds to determine if the trade is good or bad. All metrics must pass to be a good trade.

What is the Criteria Form

These are the default proven calculations used for analysis. However, I have allowed you to adjust them.

Avg Days To Change By $1

You enter how many trading days it takes on average for the price to move $1.00.

Avg Days To Change By $1 Cushion

This builds in a safety net by adding additional trading days to the average $1 movement you calculate.

Minimum # of $1 moves needed

If your strike price is $2 away from the current price, you would put 2. If it's $5 you would enter 5.

Est Req $ Movement Date

Based on your avg movement data, cushion, & # of $ moves needed; this provides the date that your strike price would occur.

Req $ < Exp Date

This checks to see if the estimated strike price goal date occurs before the expiration date.