Getting Started
Introduction Quick Start Guide Registration & Login
Core Features
Dashboard Overview Options Opportunities Watchlist Management Risk Parameters Symbol Management
AI Features
AI Agents AI Trade Analysis
Trading Features
Strategies Opportunity Analysis User Profile
Resources
FAQ Glossary Best Practices

Best Practices for Using the Platform

Strategies, tips, and guidelines to maximize the value of your options analysis workflow.

General Trading Principles

Risk Management First

The platform identifies opportunities, but you manage risk:

  • Never risk more than 1-2% of your account on a single trade
  • Set stop losses before entering positions
  • Define profit targets and stick to them
  • Don't chase trades—there's always another opportunity
  • Diversify across symbols, strategies, and expirations

Start Small, Learn, Scale

Recommended progression for new platform users:

  1. Week 1-2: Paper trade or small positions ($100-200) to learn the platform
  2. Week 3-4: Increase to modest positions ($500-1000) as you gain confidence
  3. Month 2+: Scale to your target position size based on proven success
  4. Ongoing: Keep detailed records and review what works

Platform Configuration

Optimizing Risk Parameters

DO:
  • Start with broader parameters, then tighten based on results
  • Adjust parameters based on market conditions (tighten in volatility)
  • Set minimum liquidity high enough for easy execution (100+)
  • Match parameters to your actual risk tolerance and strategy
  • Review and adjust monthly as you learn what works
DON'T:
  • Set parameters so tight you get zero opportunities
  • Copy someone else's settings without understanding them
  • Change parameters daily based on emotions or one bad trade
  • Ignore liquidity requirements to chase high returns
  • Set unrealistic minimum returns (50%+) unless truly speculative

Symbol Selection Strategy

Choose your monitored symbols wisely:

Symbol Type Examples Why Include
Major ETFs SPY, QQQ, IWM High liquidity, lower volatility, consistent opportunities
Mega Cap Tech AAPL, MSFT, GOOGL Deep options markets, good for spreads
Sector Leaders JPM, XOM, UNH Diversification, stable but significant moves
Growth Stocks TSLA, NVDA, AMD Higher volatility, larger potential returns

Recommended: Start with 8-12 symbols. Too few = missed opportunities. Too many = analysis paralysis.

Daily Workflow

Optimal Daily Routine

  1. 9:15 AM ET (Pre-Market):
    • Review market news and any overnight developments
    • Check watchlist for positions approaching expiration
    • Note any earnings or events on your symbols
  2. 9:30-10:00 AM ET (Market Open):
    • Wait for opening volatility to settle
    • Review dashboard for fresh opportunities from market open scan
    • Add top 3-5 opportunities to watchlist for monitoring
  3. 12:00-1:00 PM ET (Mid-Day):
    • Check watchlist performance
    • Review detailed analysis on promising opportunities
    • Execute 1-2 trades if setups meet criteria
  4. 3:30-4:00 PM ET (Late Day):
    • Check for any last-minute opportunities
    • Update notes on watchlisted positions
    • Plan exits for next day if needed

Opportunity Evaluation

The 3-Layer Analysis Method

Don't trade solely based on composite score. Use this layered approach:

Layer 1: Quick Screen (10 seconds)
  • Composite Score > 70
  • Risk Score < your max tolerance
  • Expected Return > your minimum target
  • Liquidity adequate (volume 100+)
Layer 2: Detailed Review (2 minutes)
  • Check underlying stock chart—trending or choppy?
  • Review Greeks—do they match your strategy?
  • Verify time to expiration aligns with your outlook
  • Look at probability ITM—realistic for your thesis?
Layer 3: Final Validation (5 minutes)
  • Check news—any upcoming earnings or events?
  • Review option chain in your broker for current prices
  • Verify bid-ask spread is reasonable
  • Define specific entry, target, and stop loss prices
  • Calculate position size based on risk (1-2% account)
Red Flags to Avoid

Skip opportunities with these warning signs:

  • Wide bid-ask spread: >10% of option price = poor liquidity
  • Upcoming earnings: Within 7 days unless you have a specific thesis
  • Extreme IV: Very high IV means expensive options that may crash
  • Broken stock: Company-specific issues (fraud, bankruptcy, etc.)
  • Illiquid strikes: Volume <50 even if score is high
  • Too good to be true: 100% return with 20 risk score = something's wrong

Position Management

Taking Profits

Have a clear exit strategy before entering:

Strategy When to Exit Best For
Fixed Percentage Exit at 50% profit target Beginners, consistent gains
Scaled Exits 50% at 30% profit, rest at 60% Balancing risk and upside
Time-Based Exit at 50% of time remaining Avoiding theta decay
Technical Exit when stock hits resistance Advanced traders with TA skills

Cutting Losses

Protect your capital with disciplined stop losses:

Effective Stop Loss Rules:
  • -30% Rule: Exit if position down 30% from entry (simple, effective)
  • Time Stop: Exit if not profitable by 50% of time to expiration
  • Thesis Invalidation: Exit if your original reason for the trade is no longer valid
  • Underlying Price: Exit if stock breaks key support/resistance

Advanced Strategies

Using Opportunities for Multi-Leg Strategies

Platform identifies single-leg opportunities, but you can combine them:

Credit Spreads
  • Find high-probability ITM puts (60-70% probability)
  • Sell the put, buy a further OTM put for protection
  • Collect premium while limiting risk
Iron Condors
  • Identify ATM strikes on low-volatility symbols (SPY, AAPL)
  • Sell OTM call spread and OTM put spread
  • Profit from time decay in range-bound stocks
Calendar Spreads
  • Find opportunity with good Greeks in near-term expiration
  • Sell near-term, buy same strike in further expiration
  • Profit from faster decay of short option

Common Mistakes to Avoid

Top 10 Mistakes
  1. Trading based on composite score alone without reviewing detailed analysis
  2. Ignoring liquidity and getting trapped in illiquid options
  3. Position sizing too large relative to account size
  4. Holding through expiration instead of closing early
  5. Not having exit criteria before entering trades
  6. Chasing losses by increasing position size after losers
  7. Over-trading instead of waiting for quality setups
  8. Ignoring market conditions (don't buy calls in downtrend)
  9. Mixing strategies without tracking which ones work
  10. Failing to keep records of wins, losses, and lessons learned

Record Keeping

The Trading Journal

Track every trade with these details:

  • Entry: Date, symbol, strike, expiration, premium paid, composite score
  • Rationale: Why you entered (score, Greeks, stock outlook)
  • Plan: Profit target, stop loss, time frame
  • Exit: Date closed, premium received, P/L percentage
  • Review: What worked, what didn't, lessons learned

Monthly Review: Analyze win rate, average return, which symbols/strategies work best.

Final Thoughts

Keys to Success
  1. Discipline beats intelligence: Follow your rules even when it's hard
  2. Small consistent wins compound: Don't chase home runs
  3. The platform is a tool, not a crystal ball: You make the final decisions
  4. Risk management is everything: Protect capital first, profits second
  5. Learn from every trade: Track, review, improve continuously

Remember: The goal isn't to find the perfect trade—it's to develop a systematic, repeatable process that generates consistent returns over time. Use this platform as your research assistant, but always apply your own analysis, judgment, and risk management.