This question came from our user Bert J. Thank you, Bert!
He asked "Could you advise if your service would be good for picking option trades?"
There are two parts to picking an option trade. Doing research on the underlying company. Executing the option order. You can use Stock Card for evaluating the strength of a company. And, that is, of course, one of the inputs you would need to pick an option.
Long Answer (using an example)
Let's take an example to better understand how you can use Stock Card to do research about the underlying company behind your option order.
Let's say you plan to Sell a Put Option for income.
- Selling a Put option for large, well-established companies that I'm confident they don't have extreme fluctuations.
- Also, selling a Put option of stocks that their share price is lower than $100. Because an option contract is for 100 shares, I don't like to risk bigger than $10,000.
- Lastly, I look for stocks that re undervalued, because there is a high likelihood that stock price would go up.
With the above context in mind, here are the steps I would take on Stock Card:
- On All Stock Card page, using the Advanced filters on the left, I look for stocks with strong operations, steady growth, large market cap
- Filtering them based on share price (lower than $100)
- Filtering them based on fair share price (looking for undervalued stocks)
Then, I switch to my brokerage account:
- Looking at my brokerage account Option chain to identify the return, exercise date, and making an order there.
In summary, you can use Stock Card for any stock market-related research. Stock Card is designed to give you a comprehensive view of any publicly-traded company without the need for you to spend hours reading the news or leafing through annual reports.
As always, let us know if you have any questions by clicking on the chat button on the bottom-left corner of the screen, or email us at email@example.com.
Talks soon, and happy researching!