Proprietary analytics to identify, analyze, and execute.
Define your objective.
There are many different ways to capture opportunity in the options market place, but they all start with a goal. Whether you're trading around, over, or independent of equity holdings, it's critical to set your strategy and stick to it.
Well defined objectives not only enforce rigor, but manage expectations.
Explore how TheTape can amplify different strategies below.
Every strategy requires a different lens for the market. TheTape is built to identify the specific options and stocks or ETFs that present opportunities for your trading objective.
For options strategies designed to tailor equity outcomes, TheTape can help you time rolls, alert when prices hit extremes, and signal trade initiation opportunities. Indicators like GULL and HRON track volatility buffering strategies for long term investors. Covered Calls and Cash Puts measures premium collection over time.
Looking to get long a rebounding stock? Lean into downside momentum? For stocks where you have a short term directional view, leverage options with positive expected value. LIQ identifies stocks where the spread pricing has moved significantly. Fixed Delta Verticals takes live markets and compares them to historical models.
Earnings are the most active trading season for equities. Use LIQ Earnings to stay on top of the calendar and track how pricing has adjusted leading into the event. Fixed Delta Butterflies identifies the specific spreads that let you get long or short movement on the announcement.
Options can be leveraged to collect premiums in exchange for writing exposure. Identify the most expensive contracts with Expensive Puts (and Calls) to build baskets of risk. Find expensive or cheap premiums with Fixed Delta Condors. Selling cash secured puts is a bullish trade, while condors offer market neutral exposure.
Once you've found an opportunity that meets your strategy criteria, it's critical to analyze what both historical data and current market prices are telling us.
VRP or "Variance Risk Premium" is the theoretical premium that is captured by option writers in exchange for bearing risk. The VRP Lab tracks how implied volatility compares to realized volatility, so traders can frame their expectations. Is this option typically well priced, or can there be significant deviations and opportunities?
The skew curve is the most descriptive chart in options. It shows how volatility is priced in time and stock space. StableSkew normalizes these values for easy comparison to benchmarks and itself. History Mode turns back the clock to see how pricing has changed over time.
Checking the shape of the curve before executing ensures you're aware of the risks as well as capturing the best opportunity.
Our custom built suite of 5 different Spread Indicators track the value of the most popular trading strategies and overlays. Using fixed time and delta values, we isolate what's moving beyond just time and stock price.
A trade is only as good as your ability to get in and get out. Use our liquidity analytics to monitor market depth. Onboard as a client for custom strategy design and execution.
The LIQ Index
The LIQ Index is designed to both identify opportunities as volumes and market depth increase, but also to rank and compare issues for execution quality.
Get the full detail on how this important index is constructed with open interest, volume, and spread width data.
Example Client Portfolios:
A custom basket of high dividend stocks, REITS, and MLPs running the wheel strategy
A basket of short earnings trades in the most liquid stocks