40 Minute Options Deep Dive in 4 Stocks (with thinkScript)
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- Опубліковано 10 січ 2025
- We're going to focus on 4 stocks that we're bullish on, and find options trades setting up that provide us with an edge.
To help measure the change in option's price, we can also lean on thinkScript to quickly calculate quick statistics. For example, one script that we've coded and included below, helps you to quickly assess how expensive or cheap an option's price is compared to its underlying stock price. As an FYI, Investors Business Deal has a golden rule of less than 4% for ATM options.
Another example that's covered in the deep dive is around measuring relative change in the option's price from a few days ago. This helps to find things like puts that have increased more than other strikes on the option's chain, where the premium is "juicier" and worth selling.
The four stocks that we'll take a look at are Microsoft (MSFT), Facebook (FB), Delta Air Lines (DAL), and Zynex (ZYXI). Microsoft and Facebook are more conservative plays, vs. Delta Airlines and Zynex which are on the more aggressive side.
We'll use the implied volatility, along with our option's pricing thinkScript to find opportunities and craft high-probability trades. Some strategies discussed include selling cash-secured puts, call debit spreads, butterflies, broken-wing butterflies and OTM calls.
SHARED LINK TO THINKSCRIPT CODE:
Options Percent Change from [x] Days Ago: tos.mx/iEuHqJ1
Option Cost as a Percent of Underlying Stock: tos.mx/JlKAs9r
PDF OPTIONS ONE-PAGER:
Options 1 Page Quick Reference Guide:
tosindicators....
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Here are video timestamps that might come in handy:
0:01 - Introduction and Overview of Greeks
9:31 - MSFT: Selling Cash Secured Puts (Fib Retracement)
18:00 - FB: Selling Cash Secured Puts (Fib Retracement)
21:52 - DAL: Butterfly, Broken-Wing Butterfly and/or Cash Secured Puts
31:27 - ZYXI - Vertical Call Debit Spread and/or Cash Secured Puts
38:30 - IBD thinkScript Tweak and Conclusion
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Download the Stock Volatility Box here:
www.volatility...
Download the Futures Volatility Box here:
www.tosindicat...
Watch the new Triple Pro Squeeze course here:
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#Options #DayTrading #ThinkOrSwim
Here are video timestamps that might come in handy, along with the links to download the PDF/code:
0:01 - Introduction and Overview of Greeks
9:31 - MSFT: Selling Cash Secured Puts (Fib Retracement)
18:00 - FB: Selling Cash Secured Puts (Fib Retracement)
21:52 - DAL: Butterfly, Broken-Wing Butterfly and/or Cash Secured Puts
31:27 - ZYXI - Vertical Call Debit Spread and/or Cash Secured Puts
38:30 - IBD thinkScript Tweak and Conclusion
Download thinkScript code and PDF:
tosindicators.com/indicators/options-deep-dive
Is there a way to write script to find block trades within the time and sales?
Not that I'm aware of... I'm assuming you're trying to find sweeps using L2 data.
@@TOSIndicators yea similar to how paid scanner notify you of large block orders. Thanks anyway
How are you just clicking on buying or selling to set up leg for contract?
Ctrl + click each option leg
This is a very useful tool for scanning good potential option premium! One issue that I have is I installed the script a few times for some reason. Is there a way to remove installed shared item from the Customise Info Layout list?
Glad you liked the script. There's no way to delete custom quote scripts, so I usually just overwrite them as needed (with a new title).
God I hope your a profitable trader because if you can't be then I have zero hope.