Metrics

A composite score that ranks options by combining profitability likelihood and risk-adjusted returns. Normalized across all contracts daily.

(Probability of Profit + Reward/Risk Ratio) / 2

A strategy with 70% profit probability and 20% reward/risk ratio would score: (70 + 20) / 2 = 45 points.

The ticker symbol of the underlying asset (stock or index).

AAPL represents Apple Inc. stock traded on NASDAQ.

Strategy - The options strategy being employed.

Cash Secured Put: selling a put option while holding enough cash to buy 100 shares if assigned. Covered Call: selling a call option while owning at least 100 shares of the underlying stock.

The maximum profit potential if the strategy expires at the most favorable price. See also the formula for net credit.

Net Credit

For a $2.50 premium CSP: maximum profit is $250 (premium x 100 shares) if stock stays above strike. For a $2.50 premium CC: maximum profit is also $250 (premium x 100 shares) if stock stays below strike.

The maximum loss potential if the strategy expires at the most unfavorable price.

For CSP with $150 strike and $2.50 premium: max loss is $14,750 ($147.50 x 100) if stock goes to zero. For CC with $150 strike and $2.50 premium: max loss is $14,750 ($147.50 x 100) if stock goes to zero.

The reward-to-risk ratio showing potential profit per dollar of potential loss.

(Max Profit / abs(Max Loss)) x 100

If max profit is $250 and max loss is $1,750: ratio is (250 ÷ 1,750) x 100 = 14.3%.

The probability that the strategy will be profitable at expiration. Currently this is determined by using the delta greek as the probability the option will expire in the money.

1 - abs(Delta)

If the delta of this option is 28%, then the probability of profit is 72%, meaning there is a 72% chance this trade will be profitable when the option expires.

The current market price of the underlying stock or index.

AAPL trading at $150.25 per share as of the last market update.

The predetermined price at which the option can be exercised.

$145 strike means you can buy (call) or sell (put) the stock at exactly $145 regardless of market price.

Days To Expiration - the number of days until the option expires.

Expiration Date - Current Date

The option is expiring in 21 days / 3 weeks, after which it becomes worthless if not exercised. Typically this is the target goal of the wheel strategy.

The implied volatility derived from option prices using Black-Scholes.

Iterative solution of Black-Scholes equation

28.5% IV means the market expects the stock to move about 28.5% annually based on current option prices.

Where current IV stands between the 52-week high and low (0-100).

((Current IV - 52-week Low IV) / (52-week High IV - 52-week Low IV)) x 100

Rank of 85 means current IV is higher than 85% of the time over the past year - options are expensive.

Percentage of days this stock had lower IV over the past year (0-100).

(Days with Lower IV / Total Days) x 100

80th percentile means IV was lower than today on 80% of trading days this year.

Whether this is a weekly option (expires Fridays) or monthly.

Weekly options expire every Friday, giving more frequent trading opportunities than monthly options.

Liquidity ranking calculated using harmonic mean of volume and open interest (0-100). Normalized across all contracts daily.

abs(round(2 x Open Interest x Volume / (Open Interest + Volume)))

With 1000 open interest and 500 volume: 2 x 1000 x 500 / (1000 + 500) = 667 liquidity score.

Open Interest - Total number of outstanding contracts not yet settled.

1,250 contracts means 125,000 shares worth of options are currently held by traders.

Volume - Number of contracts traded in the previous trading session.

85 contracts traded yesterday, indicating moderate trading activity for this option.

The current bid price - what buyers are willing to pay for this contract.

$2.35 bid means someone will buy your option contract for $235 (per 100 shares) right now.

The current ask price - what sellers are willing to accept for this contract.

$2.45 ask means you must pay $245 (per 100 shares) to buy this option contract right now.

The mathematical expectation of the trade outcome.

(Max Profit * Probability of Profit) / 100

With a max profit of $250 and a 70% probability of profit: (250 * 70) / 100 = $175 expected value.

Simple annualized return calculation using linear extrapolation.

P/L x (365 / Days To Expiration)

A 2% return over 30 days annualizes to: 2% x (365 ÷ 30) = 24.3% per year.

A visual representation of the underlying asset's price movement over the last 7 days.

Small line chart showing if the stock trended up, down, or sideways over the past week.

A visual representation of the underlying asset's price movement over the last 30 days.

Small line chart showing monthly price trend to help assess recent momentum and volatility.

A visual representation of the underlying asset's price movement from the beginning of the current year to present (Year-to-Date).

Small chart showing how the stock has performed since January 1st of this year.

The full contract name including ticker, expiration date, strike price, and option type (put/call).

AAPL Jan 19 2024 $180 Call - the complete name identifying this specific option contract.

The industry classification of the underlying asset (e.g., Technology, Healthcare, Financial Services).

Consumer Electronics industry includes companies that make phones, computers, and personal devices.

The sector classification of the underlying asset (e.g., Technology, Healthcare, Energy, Consumer Discretionary). Sectors are broader groupings than industries.

Technology sector includes software, hardware, and semiconductor companies - broader than specific industries.

The country where the underlying asset is based or incorporated.

United States domicile means the company follows US regulations and reports in US dollars.

The exchange on which the underlying asset is listed and traded (e.g., NYSE, NASDAQ, AMEX).

NASDAQ exchange offers electronic trading with typically tighter spreads than NYSE floor trading.

The major market index of which the underlying is a member, if any (e.g., S&P 500, Dow Jones, NASDAQ 100).

S&P 500 membership indicates this is a large-cap stock among the top 500 US companies.

The number of contracts buyers are willing to purchase at the bid price when this data was captured.

25 contracts at bid means 25 traders want to buy at the current bid price.

The number of contracts sellers are willing to sell at the ask price when this data was captured.

40 contracts at ask means 40 traders want to sell at the current ask price.

Indicates the optimal percentage of your portfolio to allocate to this trade.

P - ((1 - P) / R), where P is probability of profit and R is reward-to-risk ratio

15% Kelly suggests risking 15% of portfolio on this trade for optimal long-term growth.

Measures how much the stock moves relative to the overall market.

Covariance(Stock, Market) / Variance(Market)

Beta of 1.2 means stock typically moves 20% more than the market (Ex. 1.2% if S&P moves 1%).

Sentiment rank from 0 to 100, based on the VanEck Buzz Sentiment listing.

Sentiment rank of 75 indicates generally positive social media and news coverage.

How much the option's price changes for every $1 move in the underlying asset's price.

Derived from Black-Scholes equation

Delta of 0.30 means option price increases $0.30 for every $1 the stock rises.

How much the option's delta changes for every $1 move in the underlying asset's price.

Derived from Black-Scholes equation

Gamma of 0.05 means delta increases by 0.05 for every $1 the stock moves.

How much the option's price decreases each day due to time decay.

Derived from Black-Scholes equation

Theta of -0.02 means option loses $0.02 in value each day due to time decay.

How much the option's price changes for every 1% change in implied volatility.

Derived from Black-Scholes equation

Vega of 0.15 means option price changes $0.15 for every 1% change in implied volatility.

How much the option's price changes for every 1% change in interest rates.

Derived from Black-Scholes equation

Rho of 0.08 means option price increases $0.08 for every 1% rise in interest rates.

The company name of the underlying stock.

Apple Inc. - the official corporate name registered with regulatory authorities.

Price-to-earnings ratio - how much investors are 'paying' for each dollar of earnings.

Stock Price / Earnings Per Share

P/E of 25.4 means investors are 'paying' $25.40 per share for every $1 of annual earnings.

Forward price-to-earnings ratio based on estimated future earnings.

Stock Price / Forward Earnings Per Share

Forward P/E of 22.8 based on next year earnings estimates - often more relevant than trailing P/E.

Forward price-to-sales ratio based on estimated future sales.

Market Cap / Forward Sales

P/S ratio of 3.2 means market cap is 3.2 times annual sales - useful for growth companies.

Earnings per share - company's net income divided by outstanding shares.

Net Income / Outstanding Shares

EPS of $4.25 means the company earned $4.25 per share over the past 12 months.

Annual dividend payments as a percentage of the stock price.

Annual Dividend / Stock Price x 100

2.5% dividend yield provides annual income of $2.50 per $100 invested.

The date when the stock trades without the dividend.

Ex-dividend date March 15th means you must own the stock by March 14th to receive the dividend.

Percentage indicating how efficiently the market is pricing the options.

Risk/Reward Ratio x Probability of Profit

A market efficiency of 75% suggests that the options are fairly priced, with a good balance of risk and reward. The lower the efficiency, the higher chance there is a pricing inefficiency that can be exploited by traders.

Link to external chart for the underlying stock.

Clickable link that opens external charting website like Yahoo Finance or TradingView.

Link to external option chain for the underlying stock.

Clickable link to view all available options for this stock on external platforms.

Link to StockTwits social sentiment for the underlying stock.

Link to social media discussions and sentiment analysis for this stock.

Link to Finviz daily chart for the underlying stock.

Link to detailed daily price chart with technical indicators on Finviz.

Link to Finviz weekly chart for the underlying stock.

Link to weekly price chart showing intermediate-term trends on Finviz.

Link to Finviz monthly chart for the underlying stock.

Link to long-term monthly price chart for analyzing major trends on Finviz.

Whether the option is currently in the money.

For calls: Stock Price > Strike Price; For puts: Stock Price < Strike Price

Yes means call option has intrinsic value or put option would profit if exercised now.

Annualized return using compound growth formula based on weekly compounding.

(1 + P/L) ^ (52 / (Days To Expiration / 7)) - 1

A 2% return over 30 days compounds to: (1 + 0.02) ^ (52 / (30/7)) - 1 = 25.6% per year.

Bid-ask spread as a percentage of the bid itself.

(Ask - Bid) / Bid

3.2% spread means it costs 3.2% to buy and immediately sell this option. Can be used as a measure of liquidity.

How far in the money the option is as a percentage.

(Strike Price / Stock Price) x 100

8.5% in-the-money means option has intrinsic value equal to 8.5% of strike price.

Maximum profit potential as a percentage of strike price.

(Max Profit / Strike Price) x 100

45.2% ratio means maximum profit potential is nearly half the strike price.

The last traded price of the option.

Last trade at $2.30 shows most recent transaction price for this option contract.

The midpoint between the bid and ask price.

(Bid + Ask) / 2

Mark price of $2.20 is the midpoint between $2.15 bid and $2.25 ask.

The date when the option expires.

April 19, 2024 expiration means option becomes worthless after market close on this date.

A unique identifier for the option contract.

AAPL260419C00180000 uniquely identifies this Apple $180 call expiring April 19, 2026.

The total market value of the company's shares.

Outstanding Shares x Stock Price

$2.5T market cap makes this one of the largest publicly traded companies globally.

The net amount paid to enter the trade.

$150 net debit means you pay $150 upfront to enter this spread or multi-leg strategy.

The net amount received from the trade.

Mark * 100

$80 net credit means you receive $80 upfront when entering this spread or covered strategy.

The underlying price at which the option trade breaks even.

$182.50 breakeven means stock must reach this price for the strategy to be profitable.

The minimum margin required to enter the trade. For most brokers, this is typically somewhere around the strike price of the option multiplied by 100 shares - since a typical options contract controls 100 shares.

Strike Price x 100

An options contract with a strike price of $5 requires at least $500 in margin to enter the trade.