FREE INVESTMENT ARTICLE:
3 Almost Bulletproof Option Trading Strategies  » Learn More
View All PowerTips

PowerTip #76
Optimize it...
Do you have a sentiment on the direction of a certain stock but do not know which option might be the best to purchase? Click on Long Option Finder, enter in your stock symbol, your expected price, your desired investment amount and a target date for your expected price. The Long Option Finder will calculate which option would theoretically yield the best return if the stock hit your expected price on your selected target date! It can be used for long puts and calls.
Was this tip helpful? 

PowerTip #77
Do you want to compare risk and reward for multiple strategies?
By now you know you can use the PowerOptions Search tool to find positions in a given strategy that match your criteria, and use the Search By Symbol tool to view positions in a given strategy one stock at a time.

But, what if you want to compare Covered Call and Naked Put returns one stock at a time? What is the risk-reward of a Bull Put Credit Spread vs. a Calendar Call spread? The Search Summary tool is your solution. Simply enter in your stock symbol and select the strategies you wish to compare. The Search Summary tool will give you a few possible trades for each strategy so you can compare the risk and returns for multiple strategies on one page.
Was this tip helpful? 

PowerTip #78
Has your stock fallen in price?
The Stock Repair tool can help you repair your sunken stock. Simply enter in your stock symbol, cost per share and number of shares and the Repair tool will try to find ratio call spreads to lower the break-even of your stock position.

Yes, ratio call spreads by themselves have infinite risk to the upside, but by combining stock ownership + long call + twice as many short calls there are no naked calls. The stock ownership covers half of your short calls and the long call covers the remaining obligation. Check it out, and see if your fallen stock can be repaired!
Was this tip helpful? 

PowerTip #79
What is the Stock Repair tool showing me?
When you first enter your stock symbol, cost per share and number of shares into the Repair tool you will see a table of potential credit and debit repairs. If you see one that has a lowered break even and net credit that appeals to you, click on the Repair Details button to see the trade specifics. Use the Analyze Trade button to see the Profit and Loss chart of the potential Stock Repair.

If you see 'N/A' fields in the Break Even column or in the Trade Details fields, this means that the system tried to find a repair spread using the listed strike prices, but the position would not lower your break even or result in a profit.
Was this tip helpful? 

14 DAY FREE TRIAL!

No credit card required · Easy tutorials to get started · Free Coaching Sessions
Start My Trial Now
Important: Your Password will be sent to you by email. Please make sure that your email is correct.
How To Trade Options - Option Power - Stock Options Trading Information