TradeStation Help

Using the OptionStation Search Wizard

The OptionStation Search Wizard provides the steps used to gather the information needed to run an options position search. In each step, you must answer specific questions or provide your market criteria related to the position search you are about to run. Your answers and selections are used, along with the available data on the underlying asset and options, to identify and rank option positions based on their theoretical profit/loss.

Position Searches can be performed for any underlying asset (stock or index) that has available options.

OptionStation Search Wizard

  1. Search Method - Select whether you are performing a Search for new positions or Adjust an existing position.

Searching for New Positions, the additional steps are:

  1. Underlying Asset - Specify the underlying asset(s) on which to base the search. You may include more than one underlying asset per search. When an underlying asset(s) is selected, the Search Wizard automatically accesses the data required to run the search. The options used in the search are based on the strike and month proximity settings.
  2. Strategies - Selects a combination of market outlooks and/or strategies on which to base you options position search.
  3. Holding Period - Specifies the amount of time that you want to hold your option position.
  4. Underlying Asset Target Price - The underlying asset target price assumption is the price at which the underlying asset will settle at the time the position is closed (end of the holding period).  You can choose to use the current price as the target or specify a higher or lower price target for each asset.
  5. Costs/Capital - The maximum risk per trade (or position). The Search Wizard identifies only those positions whose risk is equal or less than this dollar amount.
  6. Volatility - An estimate of the future volatility level of the underlying asset. If you are uncertain of future volatility levels, we suggest you use the Wizard's default (current volatility).
  7. Pricing Models - The models are used to perform the calculations within Position Search Wizard. Each model is unique in its calculation method. In order to complete the Position Search Wizard, you must select one of each type of model. Those inexperienced with models or unsure of which model or models to use, may choose to have the Position Search Wizard automatically select the appropriate models.
  8. Results - The maximum number of position to display in the results page.

Adjusting an Existing Position, the additional steps are:

  1. Underlying Asset/Existing Position - Specify the underlying asset(s) on which to base the search from existing positions. You may include more than one underlying asset per search. When an underlying asset(s) is selected, the Search Wizard automatically accesses the data required to run the search. The options used in the search are based on the strike and month proximity settings.
  2. Strategies - Allows you to select a combination of market outlooks and/or strategies on which to base you options position search.
  3. Adjustment Sizing Logic - Allows you to select the logic to use for calculating the adjusted size of the position.
  4. Holding Period - Specify the amount of time that you want to hold your option position.
  5. Underlying Asset Target Price - The underlying asset target price assumption is the price at which the underlying asset will settle at the time the position is closed (end of the holding period).  You can choose to use the current price as the target or specify a higher or lower price target for each asset.
  6. Costs/Capital - Your maximum risk per trade (or position). The Search Wizard identifies only those positions whose risk is equal or less than this dollar amount.
  7. Volatility - An estimate of the future volatility level of the underlying asset. If you are uncertain of future volatility levels, we suggest you use the Wizard's default (current volatility).
  8. Pricing Models - The models are used to perform the calculations within Position Search Wizard. Each model is unique in its calculation method. In order to complete the Position Search Wizard, you must select one of each type of model. Those inexperienced with models or unsure of which model or models to use, may choose to have the Position Search Wizard automatically select the appropriate models.
  9. Results - The maximum number of position to display in the results page.

Running the Search

Once you have selected all of your parameters, click Finish to run the search. The wizard then processes this information and automatically identifies the most profitable option positions based on the information you provided. Positions are sorted with the highest theoretical P&L appear at the top of the list.

Changing Parameters and Re-Running the Search

Once you have completed your first Search and are working in a Search results window, you are able to return to the Search criteria dialogs to change or review the selections.

  1. From the Search results window, use the menu bar Format > Search menu sequence.
  2. From the Format Search window, click the desired tab to modify or review.
  3. After the selections have been made or the new values entered, click OK to run the Position Search using the modified selections/values. If you are reviewing or wish to close the Format Search dialog box without making any changes, click Cancel to return to the Search window.

Whenever you change a value or selection and click OK, a new search will be performed and the resulting new values will replace the previous values in the Position Search dialog.