Top 4 Apps for Option Traders
Note that for simplicity purposes in the simulator, options cannot be exercised eg. They want to manage their accounts and trading activities quickly and easily with apps that they can access on smartphones and tablets, as well as on personal computers.
Analyze options strategy performance and validate trading ideas using historical data
Additionally, their comprehensive website offers seminars, on-demand videos, and even events you can attend. Their trading simulator differs in that users do not use virtual currency but rather the OIC uses a Position Simulator that explains what affects the price of options and uses a mathematical formula with specific inputs to calculate the new price. Because of this, the OIC does not provide a traditional simulator but offers a sophisticated online calculator that can price American stock options given the specified data.
A great, proactive learning environment and extremely user-friendly. Similar to the Options Industry Council, How The Market Works is another educational company that teaches aspiring investors about their namesake.
The program allows users to access Forex portfolios, penny stocks, and mutual funds in both the US and Canadian markets.
OptionsHouse is a broker that offers the unique feature of using their platform before starting a paper trading account with them. Their intuitive platform and functionality provide investors of all levels the tools they need to succeed.
Their virtual trading feature is a great way for amateur investors to woodshed their skills and compete with the pros. Back in , OptionsHouse also expanded their chart trading feature which conveniently allows you to adjust trades onto the actual chart. Thinkorswim is arguably the best options paper trading simulator online, and for good reason.
Thinkorswim also provides a blanket of educational webcasts. A bit of a warning: Thinkorswim PaperMoney is only available for download. Thinkorswim also has a fantasy stock market game, which can be found here. Analytical reports are a great way to track your own progress as you make your way through the learning process.
Graphs and charts, along with growth and loss indicators, are crucial as they should reflect actual reports and explanations explaining why certain options prices rose or fell.
Also consider their software and its features. The gaming aspect of options trading is a great way of gauging how you fair with the rest of the competition while earning real prizes and money along the way.
Be sure to direct your attention to the educational materials a broker offers in addition to their simulators. Theory is just as important as practice and if you feel you need to expand your knowledge some more before getting your feet wet then be sure to find a broker that offers extensive articles, guides, and even videos that teach you about the subject matter. For even further assistance, look for a platform that not only gives you tutorials but will interact with you in real-time.
Many of these will not only give you the literature to learn more about options trading but they will also offer suggestions for trading based on current market conditions and trends. Options aren't the same as stocks, although there is a link between the equity markets and the options markets. There are two types of options, calls and puts. An option to buy an asset is a call and an option to sell an asset is a put.
One use of options can be to provide insurance against losses. More specifically, put options are a useful tool to add safety to your portfolio. In our example portfolio, we made the following purchase in high-flying Oil play Exxon Mobile.
If anything should cause Exxon to lose profits, or even grow their profits at a slower rate than expected, this stock could be in for a sharp decline. Any option that is in yellow denotes that the option is currently "in the money". Front Volatility Implied Volatility. Greeks - Delta, Gamma, Theta, Vega. Individual equity charts to visualize target profit, risk and distance to expiration of each options strategy. Risk visualization is displayed on the sample chart 3 Option strategy periodical returns stats.
Options strategy back testing over selected time periods until expiration. Option strategy periodical returns stats 4 Historical strategy entry and exit points are clearly displayed in a multi-column format.