To The Moon

Hello！

Welcome to Tiger Academy - 「Practical Operation with the App」episode 1.

In this session, Tiger Academy will guide you on how to better utilize the Tiger trade app for implementing option trading strategies.

While many of us understand the basic principles of options and have gained knowledge of various option strategies and their applicable scenarios, we often encounter practical challenges during actual trading. Some of these challenges include:

1.Not knowing how to adjust parameters on the options chain market interface.

2.Being unsure of how to filter out option strategies that match personal preferences.

3.Not knowing whether the valuation of options in hand is too high or too low.

4.Not knowing how to analyze the future trends of the options in hand.

Today, we will address the first two issues.

1. How to Adjust Parameters on the Options Chain?

Generally, our options chain presents information in two market display formats: list view and T-type quoting, as shown in the following image:

Each of these display formats has its own advantages and disadvantages. You can switch between these display modes based on your preferences. The specific steps involve clicking on the small arrow in the upper right corner for settings, and then selecting either "T-type" or "List" by checking the corresponding option in the settings interface.

In addition to the display mode, due to the numerous parameters associated with options and the fleeting nature of market conditions during trading, it's essential to prioritize the most crucial or frequently used parameters. Of course, different investment styles prioritize different parameters. For instance, if you are a high-frequency trader whose profits mainly come from the rapid changes in spread due to market fluctuations, you would want to prioritize the parameters of bid and ask prices along with the latest price. How can you set this up?

Using the T-type display as an example, in the settings interface, click on the small arrow to the right of "Bid" and "Ask," as well as the one next to "Last Price." This action will pin these parameters to the forefront.

And if you often hold overnight positions, primarily operate with quantitative combination strategies, you can prioritize the Greek values that you need. The method is the same as mentioned above.

Furthermore, how can you quickly match options strategies that meet your requirements through the app?

2. How to Filter Out Options Strategies that Match Your Preferences

If you have already identified the exercise time and price, and know whether to buy call or put options, you can directly filter the options you want and proceed with the trade.

If you are unsure about which strategy to choose or which option to buy, you can use the option screener to automatically match options strategies. How do you do it?

Click on the option screener.

In the interface, first, select your current position status, which primarily falls into three categories: long , short , or no position.

In these three scenarios, it is also essential to consider your expectations for the future stock price, which can be categorized as either upward, downward, or stay neutral.

For example, if I currently hold Tesla stock and, based on future expectations, I believe the stock price will remain relatively stable until January 5th, after selecting "stay neutral." and the date, the Option screener filters out an investment strategy: the covered call option strategy. This involves selling a call option while holding the Tesla stock.

Therefore, we need to check the expected annualized return so that we can match the appropriate strike price for the call option. Generally, the higher the expected annualized return, the lower the recommended strike price for the call option (resulting in higher premium income).

If you find this article helpful, please like and share it. You will earn Tiger Coins! See you in the next episode!~