Topics covered on this page:
- Fat Premiums Site-Specific Features
- Options and Weekly Options
- Technical Analysis and Charting
Fat Premiums Site-Specific Features FAQ
Q: What is the Option Premium Ratio (OPR)?
A: The Option Premium Ratio ("OPR") is a score attributed to our list of weekly options with the highest option premiums. The OPR is a ratio: depending on what the option's premium is at the time of the calculation, the score will reflect the option percentage value of the underlying asset (compared on the same time, expiry and strike values). In short, the higher the OPR, the higher the returns.
If a trader or an investor is looking to trade options with large rewarding premiums, then this gives them an outlook for each week. Our weekly option lists work with any selling strategy, such as shorting. If you are looking for volume or big movers in the markets, expect the stock or ETF with the highest OPR to move on a particular week.
The OPR value has no bearing whether if we think the underlying is neutral, bullish or bearish.
If you are looking for market direction, then please take a look at our charts with your preferred time frame (just remember to diversify!).
Q: How is the Option Premium Ratio (OPR) calculated?
A: At this given time, our formulas cannot be disclosed to the public.
Q: How can I use the Option Premium Ratio (OPR) values?
A: Generally speaking, whenever you sell options, you will want to make a lot of money by pocketing the option premium. By using our weekly OPR list, we organize the stocks and ETFs by their option percentage value of their underlying asset. Simply put, we make it easier for you to trade the appropriate weekly options that pay the most premium for a given week.
Options & Weekly Options FAQ
Q: What are weekly options?
A: Weekly options are options that expire within a week, as opposed to monthly, quarterly or leaps.
Q: How can I trade weekly options?
A: Trading weekly options (or any option) requires a brokerage account with a margin (borrowing money) setup through a financial institution of your choice. Your financial adviser will be more than happy to help you setup your own trading account. We highly recommend newcomers to paper trade before buying and selling options with real money.
Technical Analysis & Charting FAQ
Q: What indicators do you use on your charts?
A: We use the following technical indicators when charting:
- Exponential Moving Averages (EMA): 7, 27 [2-lines]
- Moving Average Convergence/Divergence (MACD): 7, 27, 7
- Relative Strength Index (RSI): 14
- Slow Stochastic (STO): 14,3
Q: What are the lines I keep seeing drawn across the charts?
A: Those two incredible lines are the support & resistance lines that our in-house charting specialist draws every week. The lines, drawn either on a hourly, daily, weekly or monthly chart, gives a trader a nice overview as to how a certain asset is holding up (or going down). Drawing support & resistance lines is an invaluable tool that seems to have disappeared in today's trading world.
Q: What kind of analysis is performed on the symbols?
A: Besides our standard issue technical analysis tool-belt, we perform our own in-house number crunching using our proprietary formulas and algorithms.