OptionsPlay is designed with easy-to-understand charts and analytics so that investors of all experience levels can leverage the benefits of options trading.
If you are a newbie looking to get deep into the options market, it is vital that you find the right platform to help you identify winning trades. Unfortunately, that’s often easier said than done.
Indeed, we understand that your search for the right platform can be a bit confusing due to the many services available out there.
That’s precisely why we decided to put one platform, OptionsPlay, under the loupe. It’s hailed as one of the beginner-friendly options analysis tools. And so, we were naturally curious to find out just how it compares to some of the big names in the industry.
Here’s our review of its key features, pros, and cons complete with a verdict.
What is OptionsPlay?
In simple terms, this is a platform that provides trading analytics to newbies to boost their understanding of the data ahead of them and help them create their investment strategies. As a result, not just newbies but even the established traders can find useful information that they can use to make a sound decision on a particular trade.
So, we can say that the program is designed to help options traders identify promising trading opportunities and alert them on the hot stock options trade ideas and strategies.
However, we would like to caution you that this program is not the cheapest around, and that is why we recommend only investing in it as a long-term plan (rather than a quick fix).
Key Features of the Program
Before we get to how much OptionsPlay costs, let us look at its key features. After checking out what it is made of, you can easily decide whether it is worth your money.
Here are the features.
I) Daily Trade Ideas
First and foremost, this platform was founded on the premise that dozens of trading opportunities show up every day in the market. Further, it was also established to guide novice and pro traders on how they can make use of the information to give them an advantage over the prevailing market trends.
These daily options ideas are based on bearish or bullish ideas and are emailed at 6 AM EST every market day. In addition, you can access the options that you are watching through the portfolio for intraday movement.
An outstanding aspect of this program is that it features seven scanners fully integrated into the platform to help you identify the most promising industry.
II) Income Strategies (Call or Put)
Another interesting aspect about OptionsPlay is that it generates two income strategies, i.e.
- Call Strategy
- Put Strategy
The former is for you if you own an underlying stock, while the latter is recommended for you if you do not. In case you do not know, having two strategies makes it easy for you to see the risk, return, and breakeven price of a particular stock.
Although the customization is minimal, you can evaluate risk and reward for options with different expiration dates and strike prices.
Every Monday morning, the program scans S&P 100 markets so that you can see where the highest returns lie.
III) Three Options Strategies
Then, the program will also suggest three options strategies that carry the highest probability of profit, and it doesn’t matter if they had been listed as a trade idea. This probability is arrived at using the same indicators used in finding the trade ideas, alongside historical volatility and trading range.
Even though the three strategies are given OptionsPlay scores, we are unsure how they are calculated or the scale that the scores are graded on.
Some of the data displayed by the strategies include the trade cost, the maximum amount at risk, potential return, and the breakeven price.
Also worth mentioning is that there are tools within the platform that you can use to modify the strategy and update the projections. For example, with these tools, you can adjust the stock’s target price, the date by which it will reach that price, and the future implied volatility.
Note that the evaluation of the strategies is not limited to the three that the program recommends. Still, you can choose from any of the 35 strategies categorized into bullish, neutral, bearish, and sharp-move menus.
Should you decide to go for a new strategy, this platform will automatically calculate a score and display data similarly to its recommended strategy.
IV) Trader Education
The main function of this tool is to give you a better understanding of options. It is a video library that is full of options webinars that guide you on how to use the strategies so that you can make full use of the platform. In addition to that, you will also learn how to implement the best trading practices.
As we stated initially, OptionsPlay is a bit pricey and could either go for the monthly tier of $75 or the annual subscription of $500. But, then, there is a one-month free trial during which you can learn what the service is all about and decide whether you are interested in investing in it.
How Does This Platform stand out from others?
The main differentiator of this platform is that it caters to different levels of traders. First, stock and options traders can make use of the charting for easy analysis of the market trends for sound decision making.
Active options traders would greatly appreciate the Daily Trader Ideas as it helps them identify the profit opportunities that may present themselves in the equity markets in the US.
And if you are a stockholder who intends to leverage your stocks, this program will provide you with an answer for optimal income strategies.
Which Trader is this Service Best for?
This program is best suited for the newbies who are just joining options trading, and it will help them identify trading opportunities and evaluate strategies. Although there are some features that advanced traders can make use of, most of the tools here are too basic for them.
Also, if you are a stock trader with experience in technical charting, market volatility and price targets and you want to make a move to options trading, this program may just work with you.
And if you feel that this service is too basic for you, you could always check out what OptionsVue has to offer.
Pros and Cons
Let’s now look at some of the advantages and disadvantages that we found with this service.
- Provides unbiased historical analysis of stocks
- Works for different levels of traders, i.e., novices and experienced traders
- Suggests options strategies based on probability of profit
- Uses seven scans to find options trade ideas automatically
- Has very versatile features
- Has a one-month free trial
- Pretty expensive
- Somewhat restrictive for advanced traders
As a beginner, you may find most of the trading tools in the market to be a bit confusing. However, OptionsPlay is a relatively straightforward tool that both you will have an easy time using. In addition, it clearly presents the analytics, and identifying the profitable opportunities will not be as challenging as you would have expected.
Our verdict? Try it out if you intend to join the unpredictable world of options, and we believe that the service will turn out to be a game-changer in all the moves you make.