How the score works
Options Trader Pro checks 120+ US stocks and ETFs with the same rules every time and turns the result into one score from 1 to 5 plus a rule-based example setup. This page explains what goes into it, so you can follow every result.
What the score measures
The score answers one question: how many of the conditions that matter when buying an option are met right now, and is there a warning against it? It combines six building blocks:
- Trend: price against the EMA 20, 50 and 200.
- Momentum: MACD and RSI.
- Trend strength: ADX. For a swing setup the ADX must be at least 20, otherwise the result is WAIT.
- Volatility: IV rank and expected move. Cheap options are favoured when buying.
- Dates: earnings and ex-dividend inside the holding period lower the score.
- News: the tone of recent headlines. A critical headline caps the score at 2, a clear tone can move it by one point.
The 1 to 5 scale
5 (A+) all key factors point the same way and nothing warns. 4 (A) strong with a minor caveat. 3 (B) adequate. 1 to 2 (C) no clear setup or a hard warning. A WAIT result never scores above 2. The reasons behind every score are listed next to it in the app.
How the example setup is derived
- Direction: a long call needs a bullish rule set, a long put a bearish one. Otherwise the result is WAIT. Only long options are shown, never short options.
- Strike: close to the money; for swing setups at or slightly in the money.
- Expiry: a fixed window of days to expiry (DTE), about 30 to 45 days for swing and about 10 to 18 days for short-term setups.
- Target, stop and time exit: fixed percentages of the premium, for example +50 % target and −50 % stop, plus a time rule such as close by 7 DTE.
- Prices: without a live option quote the premium is an estimate.
Data sources
Prices, history, news and earnings dates come from Yahoo Finance and are delayed by about 15 minutes. Optionally the app reads live prices and option quotes from Interactive Brokers TWS or IB Gateway, read only; it never places orders. IV rank needs history: the app stores one IV value per stock and day, and IV rank counts towards the score after about 10 days.
What the score is not
The score and the example setups are generated automatically by the same rules for everyone. No person reviews or selects them, and they do not take your financial situation, objectives, experience or risk tolerance into account. They are not investment advice and not a recommendation to buy or sell. Options can lose 100 % of the premium paid.
Conflicts of interest: the developer trades options privately and may hold positions in symbols shown by the software. The rules do not take this into account. The developer receives no payments from issuers, brokers or other third parties for results shown.