How to Use the Options Explorer on OptionsAreUs
OptionsAreUs is revolutionizing how traders find and execute options plays with its cutting-edge Options Explorer feature. In this guide, we’ll walk you through how to use this powerful tool to identify high-potential options trades—focusing on stocks near their weekly demand zones.
Let’s dive in!
Step 1: Navigating to the Options Explorer
Finding the Options Explorer is as simple as clicking the aptly named "Options Explorer" tab in the navigation menu. This is your gateway to a treasure trove of high-volume options trading data.
Once inside, you’ll notice a variety of studies available. Think of these as filters on steroids—not only highlighting the stocks with the highest options trading volume but also showing where these stocks are in relation to key levels, like supply and demand zones.
Step 2: Filtering for Weekly Demand Zone Plays
For this example, we’ll focus on the weekly demand zone filter, which uses traditional order block theory to pinpoint high-potential setups. In simple terms, demand zones represent areas where big buyers have historically stepped in, making them prime spots for future reversals.
Here’s how it works:
- The tool scans the entire market, powered by our proprietary algorithm—Spike—to locate stocks trading near their weekly demand zones.
- It highlights these stocks for you, saving hours of manual analysis.
- Each stock is ranked based on key factors, such as volume, sector activity, and proximity to demand zones.
For this case, we’re focusing on ConocoPhillips (COP), an energy stock that stood out in the scan.
Step 3: Why COP is a Strong Candidate
COP has been trading near its weekly demand zone, which suggests potential for a bounce. But what makes it even more compelling?
- Sector Momentum: The energy sector is heating up, with potential tailwinds from the incoming Trump administration's focus on tariffs. This could positively impact American multinational gas companies like COP.
- Spike’s Confirmation: The fact that Spike picked this out in the scan adds extra confidence—it’s like having a loyal friend who always has your back in the markets.
With these factors in mind, it’s time to choose an options play. 😈
Step 4: Selecting the Right Options Play
Now that we’ve identified COP as a promising candidate, the next step is selecting the right options contract. Here’s my strategy:
- Strike Price: I prefer options that are either at-the-money or a few strikes out-of-the-money. For COP, the $120 strike fits the bill.
- Expiration Date: Always give yourself enough time for the play to work out. Markets love surprises, so I choose expirations at least 3 months out. In this case, I picked a March 21, 2025, expiration.
- Premium: The $120 call was trading at $0.78 when I entered, giving me a solid balance of cost and potential upside.
By choosing this setup, I’ve positioned myself for a potential rebound while giving the trade time to develop.
Step 5: Tracking Performance
Since adding the play to my Robinhood account options watchlist, the contract is already up 2.63%—a promising start! Of course, options trading requires patience and discipline, so I’ll continue to monitor the stock and adjust if needed.
Why OptionsAreUs is a Game-Changer
OptionsAreUs makes finding high-potential options plays easy and efficient. Whether you’re a scalper, day trader, swing trader, or passive investor, Spike—our trusty algorithm—will become your new best friend. It scans the market tirelessly, giving you actionable insights and helping you trade with confidence.
Final Thoughts
If you’re serious about taking your options trading to the next level, OptionsAreUs is the platform for you. We’re constantly adding new features to meet the needs of our growing community. So why wait? Sign up today and start making smarter trades.
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