Just before March, we’re happy to announce the release of the new version of Option Samurai. We are constantly adding new features and you can expect another version end of April. Please feel free to contact us and suggest more features you’d want to see.
New Strategy: Naked Call
We’ve added another bearish strategy – Selling naked calls. The most common use case for this strategy is to sell calls above the current price of the stock so the position will show a profit if the stock’s price stays the same or goes down.
We use this strategy with combination of our ATR to Strike filter and ask that the sold strike will be above the price, at least 3 times the average move. We sometimes buy a further call to reduce the margin requirements and reduce the long tail risk (stocks can go up much further than go down).
Another use-case will be for hedging or selling a call option for a stock you already own (turning a stock position to covered call).
New Filter: Earning date calendar
We’ve added a new filter to set specific dates for earnings using a calendar. We use it for a weekend scan that shows all the earnings events in the upcoming week. You can integrate this filter into your saved scans and the dates will advance with the passing days since you created it.
One of our most popular features is the Expected Value. It is a statistical measure that tries to quantify the edge in a trade. We’ve written about it in the past (for example here) and we think it is a good metric to check when trading.
We’ve expanded on this matric and added some more information to make it more usable.
Expected Value / Max Loss: This metric is calculated by dividing the EV by the maximum loss of this trade. This lets you sort and filter trades according to how risky the trade compared to its edge. The higher the value the better the trade (less risk compared with its edge).
Expected Value Per day / Max loss: This metric is identical to the previous one but it also divides by the days left to the trade. This measure helps compare trades in different expirations.
Credit/Debit per day: This measure helps to compare trades between different expirations. It divides the cost or premium of the trade by the number of days left to expiration. This allows you to compare trades with different expirations to find the best trade.
We’ve added some general improvements, bug fixes and speed enhancements to the site.
As always – Feel free to contact us if you have any question or idea. We are working on more features and you can expect more improvements in the coming months, so stay tuned.