We created a super simple way to build your strategy.
With the WallStreet.io Options editor simply
This article is designed to show you how we use this simple information to route to the correct strike price and expiration.
When you load up a strategy in the OPTIONS tab you'll notice that we give you some options. We use this to route to the correct strike price and expiration for you.
When you're going to make an options trade you need to know 5 things.
You need to know the amount of contracts you want, if you are buying or selling to open, calls or puts, strike price and expiration. Once you have these 5 things you are ready to go with your options trade.
We created a super simple way for us to collect these 5 pieces of information.
Contracts (defaults at 1 contract, increase the number of contracts per leg and see the results update instantly.)
Buy to Open or Sell to Open - This tells us how you intend to open the position. Notice we use the opposite as your exit condition.
Call or Put - this is adjustable per leg.
At the Money, Out of the Money, In the Money - we always first establish ATM. To establish ATM we use the closest strike price to the stock price at trade entry. This could either be slightly above or below the current stock price. Once we have ATM established we can determine OTM and ITM if needed.
When you select ATM notice you are not given an option for strike prices since by definition its simply the closest strike price to the current value of the stock at the time of entry.
Days to Expiration - We always round up so if you select 30 days until expiration and the options in the actual option chain is either 28 days until expiration or 35 days until expiration we will always round up and use the 35 days until expiration.