If you are familiar with InvestOps, you have already thought about how various tools fit into your process. As is the case with many different kinds of tools, the options search engine has a variety of features that span different stages. Over time you’ll learn how to take full advantage of its many benefits, but we’ll start off here with a basic overview of the design principles that have driven the feature over the years.
While not strictly a tool for developing views, the options search engine is very focused on the target expiration date. As part of this, it includes a set of features that expose option analytics, such as implied volatilities, put/call ratios, forward prices, implied volatility valuations, and option breakevens within and across terms. These data points are very useful in scoping an investment view into a specific timeframe.
The options search engine truly excels at planning trades. It’s ideal for carefully planned views that have a time horizon and price target range.
Sometimes an investment needs to be adjusted by adding some raw firepower. Rather than just tweaking a position or two, you need to find a trade that can produce a lot of delta or theta scoped in for a specific date in the future. The options search is a great way to capitalize on expected price movement, or even lack thereof, as part of a book adjustment.