1. Using the TOS Analyze Tab to Make Better Trades

2. I WILL SHOW YOU HOW TO
set up the Analyze Tab
compare strategies to determine the best choice

3. First, Let's Pick a Stock

4. Then Define a Range

5. Pick a Direction & Target or a Range
Some possible choices:
Bull Flag breakout, target up to $355 area
Pullback, then bounce off the $295 breakout
Exhaustion gap, pullback to $280 area
Pullback and stall with the overall market

6. Pullback, then bounce off the $295 breakout
Wrong if drops below $290
Believe rally could slow down
Target $335 (two thirds of bull flag target)
Current price $315

7. Pick a Strategy Bullish Strategies: Buy Stock Buy Call Sell Put
Buy Call Vertical
Sell Put Vertical
Buy Calendar
Buy Call Diagonal

8. Which One is the Best Choice
Let's use the TOS Analyze Tab to help us decide

9. How to Set Up the Analyze Tab
This can be overwhelming until you gain experience
Many of you already know how to use this tool
To save time and favor the experienced members, I will jump right in to my method

10. Here are Some Fields I Use
From left to right starting from the top of the
Risk Profile tab:
Symbol Plot Lines Price Slices
Set Slices Reorder ALL
Show/Hide Single/Beta Date
(various symbol check boxes)
symbol wrench icon

11. Analyze – Risk Profile tab

12. Analyze – Add Simulated Trades tab
The top half resembles the Trade tab
The trades you select remain in the Analyze tab
You may add as many as wish
There are tools to adjust each symbols price, implied volatility and more

13. Analyze – Add Simulated Trades tab

14. I've Added Some Trades

15. I Must Compare Apples with Apples
In order to compare I need to use some equalization method
I will use max risk
I will now adjust the quantity of each strategy so each has about the same max risk
Use any amount that works, even if very large
For large lots, consider extra commission cost

16. Here Are the Adjusted Quantities

17. Let's look at each trade individually first
Notice where the profit and loss appears on the Risk Graph (price) and on the Price Slices (date)
Notice the Greeks (Delta, Gamma, Theta, Vega)
We can analyze them with different dates
We can also adjust implied volatility and more

18. +19 SHARES AAPL STOCK

19. +4 NOV 300 CALL

20. +2 JAN 290 CALL

21. +7 NOV 310/350 CALL VERTICAL

22. +6 JAN 310/350 CALL VERTICAL

23. -13 NOV 300/290 PUT VERTICAL

24. -6 NOV 300/280 PUT VERTICAL

25. +20 JAN/NOV 350 CALL CALENDAR

26. +17 JAN/NOV 340 CALL CALENDAR

27. +3 JAN/NOV 290/340 CALL DIAGONAL

28. +3 JAN/NOV 290/350 CALL DIAGONAL

29. To Compare the Risk Graphs Change the Plot Lines to Single Click on the dark box next to each trade you want to compare (max 8) Each risk graph will display above based on the date set on lower right

30. Here Are the First Seven Trades

31. Here Are the First Seven Graphs

32. Here Are the Next Four Trades

33. Here Are the Next Four Graphs

34. I've Narrowed It Down to Four I set the date for ten days before NOV expiration I prefer reward to risk greater than one to one I prefer positive theta I prefer a lower breakeven price

35. Here are the Four Trades

36. Here are the Four Graphs

37. Now It's Your Turn Try this on your own Choose your own criteria
Make better, more informed choices
Try different dates, some strategies perform better in a shorter time, some in a longer
Adjust implied volatility relative to the IV history

38. Questions?

39. The End