Previously, options trading was reserved for professionals mainly due to the risks involved. However, with the advent of the internet, there are many courses you can take to perfect the trade and open an online options trading account.
Further, there is more public participation than there was before.
Once you are ready to start this venture, it is crucial that you find the perfect online brokerage that would enable you to know all there is in options trading. This way, you can minimize the risks involved and make a kill in your trades.
We want you to be on the safe side and, therefore, compiled the top ten best options trading tools that you can find.
Top Options Trading Tools & Software in 2024
Now, we head over to our main discussion and look at the leading pack of options trading platforms. We shall point out what they have to offer and also highlight some of their cons.
1. Trade Ideas
As the name suggests, this platform is designed to provide an active intra-day with ideas on the ideal options to trade in. It is an intra-day scanner packed with built-in scanners that you can use to find profitable opportunities.
At first, you may find the platform a bit overwhelming, but once you get used to it, there is a lot that you can gain from it.
2. Market Chameleon
Next, we present you with a platform that uses stock fundamentals and options analytics to help you find options trading opportunities. Some of its key features include options volume and order flow data, stock market research, Upcoming earnings calendar, and options screeners.
With all these tools, you will be in an excellent position to make informed decisions.
If you are looking for a convenient way to monitor unusual activity in the options market, Options Sonar is your best bet. All the tools and scanners that you find on this platform are designed to assist in placing actionable trading information at your fingertips.
This way, you will have an edge in the market, thereby boosting your chances of making a kill in your trades.
4. FT Options Wingman
Here is another tool designed to ensure that you no longer have to track options trades manually. Instead, the platform uses volatility analytics to help you analyze your trades and also to price the options and spreads.
Even better is that the platform is constantly upgrading its functionalities and analytics visualizers so that you have an easy time building your options trading strategy.
5. Options Profit Calculator
This is a tool designed to calculate the prices of options based on the underlying price quite easily. All the strategies that you were struggling to understand will now seem easier due to the profit/loss table displaying the net gain over time as the underlying price fluctuates.
Most of all, this tool would be beneficial to both novice and advanced traders.
6. FD Scanner
This is another outstanding tool that is designed to help you find the best options to trade in. With this tool, you can filter over ten million options via different metrics, including Percentage OTM, volatility, and liquidity.
In the end, you will be more efficient in finding the perfect options for premium selling, trading, and hedging, all thanks to this tool.
And if you are always on the road, you will find the mobile version very useful.
7. Swaggy Stocks
This platform is packed with user-friendly, powerful tools and analytics designed to boost options traders' understanding of market sentiment to develop the right options trading strategies.
The most relevant feature is the options max pain theory that points out where a stock price is likely to get pinned at an options expiration. Depending on how convenient you find it, you can also view this data historically.
There is also the strategy room where all the watchlists with all the relevant information you need for your trades are. Further, you can create custom watchlists to display earning dates and stocks prices to update in real-time.
As the name hints, this is a tool that will help you come up with the best options trading strategies by giving you the trading signals for the investments.
One of its outstanding features is the charting software which aims to provide you with a visual understanding of the trades. This way, you can get an idea of the gains and losses that the strategy you have formulated can lead to.
There is also the Flow Summary Page that will provide you with trade ideas by scanning what the gurus and leading institutions are trading.
Other notable features of this platform include the Options builder, Profit and Loss View Table, and the Pre-built Filters.
9. Plot Lion
Plot Lion is packed with numerous options toolkits and short squeeze trackers that will enable you to discover new trading opportunities easily. It features an options screener through which you can find the perfect strategy based on the metrics you are interested in.
In addition to that, you also get the Option Strategy Analyzer that allows you to visualize your options strategy with metrics such as the chance of profit.
So, you will get a lot of information that will give you a better understanding of the options market before purchasing a contract. This way, you can avoid the downsides and maximize your gains in the long run.
10. Options AI
Lastly, we have the Options AI, which is a trading platform that targets retail options traders by educating them on institutional-style spread trading. It gives you the liberty to choose between options, spreads, and stocks all from one chart.
This way, you can set a reasonable price target and find the trade that works for you with ease.
The platform was founded on the principle that even though low commissions are important, we should not underrate the role of improving access to the high-probability strategies used by institutional traders.
Further, the platform also aims to disclose to the customer all that is at risk beforehand.
How to Choose the Best Options Trading Platform
Before we embark on checking out the leading options trading platforms, we’d like to (briefly) point out the factors you should consider when comparing the different brokerages.
Here you go:
1. Trading Features
The first thing you should look out for in a trading platform is whether it has all the features to help you analyze and enter trades. This way, it’ll be easy to conduct probability analysis, measure risk/rewards, and of course open trades with confidence.
Next, it would be wise to find a trading platform with low recurring fees and trade costs. Keep in mind that the average commission fees lie between $0 and $0.65 per contract.
A common feature of the best options trading platforms is that they come with simple interfaces designed in easy-to-read styles. This way, conducting trades will be a straightforward affair.
4. Educational Resources
Just like any other venture out there, there is always something to learn in options trading. So, the ideal trading platform ought to be packed with educational tools and resources to boost your knowledge of the trade.
5. Minimum Requirements
Since most platforms require you to have a minimum amount in your account, you should think about your budget and only go for account minimums that don’t exceed your budget.
Options trading is a lucrative field whereby you can make huge profits if you make the right moves.
However, it is also one of the riskiest ventures such that all your funds could easily be wiped out. This applies to beginners and advanced traders, and it is wise to have all the information you need before making any trade.
With the tools we have discussed above, you should have an easy time making the right decision. We hope you have grasped all their key features so that you can decide which one works for you.
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