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Using SOG      

  Evaluations we have found to be useful:

  • Projecting Underlying Value Movement
    Considering, What will my account look like if the underlying value increases/decreases?

  • Time-Traveling on SOG
    Considering, What will my account look like at a given time in the future?

  • Modeling Implied Volatility Scenarios
    Considering, What will my account look like if the IV increases/decreases?

  • Option Premium Valuation
    See if the option market price is over or undervalued.

  • Risk Management
    Instantaneous outlook of trades to take and trades to avoid.

  • Money Management
    Easily placed and seen stop-losses on the dashboard (grid).

  • Trading account follow-up or simulation day by day
    Track your option trade with no stress.

  • Allows all combinations 
    (up to 4-legs combinations)
    See which one is worth it or not.

  • Excellent for real trading and paper trading.

This list is by no means exhaustive.
We are sure that every trader will find additional creative applications for the What-if powers of
SOG.

 


  Paradigm Modeling Using SOG:

  • Position Assessment and Strategy Variants Testing

  • Peaking into the Future

  • What-if Scenario Manipulation


  Position Assessment and Strategy Variants Testing

          Rapidly explore various options combinations 
          and strategies. On the Grid, you will clearly see
          2 zones:black  numbers (positive) and red
          numbers  (negative). 
          
          THE LARGER THE BLACK ZONE, THE BETTER!
         
As simple as that!

  • No more indicators

  • No more guesswork

  • Your stop loss is clear 
    (a line on the Grid)

Pivot Magic Trading Course


  
  More About
 

        
SOG


   
Main SOG Page

   
Birth of SOG

 
   SOG Features


 
  Trade Dashboard

 

 

   
   Stress Free
     Trading!!! 

  By using  
  Outpouring of the
  Soul as needed,
  either before,
  during or after a
  trading session,
  you regain
  control of your
  brain states and
  can think clearly. 
  You are more
  relaxed and
  confident. This
  can give you the
  edge you need to
  succeed.
 
For more details


EXAMPLES:

Figure 1 below illustrates the Strategic Option Grid for a single option purchase strategy, 14 calendar days before expiration.  
NOTE THE SLOPE OF THE RED LOSS LINE. 

Figure 1: SOG for a Single Option Strategy

 

Figure 2 below: options combination strategy (1 call long - 1 put short), 
14 calendar days before expiration.  
NOTE THE DIFFERENT AND MORE SAFE RED LINE. 

    Figure 2: SOG for a Multiple Option Strategy


 

Peaking into the Future

        One way to evaluate our strategy is to do a little
        conjecturing. For example, what if the instrument 
        were to climb from 75.4 to 78.4, 3 points, over the 
        next 4 days?

        All we need to do is look in SOG at the cell representing
        the intersection of the Day 14 column and the Point
        Change in Underlying Instrument = +3 row. The value in
        that cell is black (positive). That value represents our net
        gain if we liquidate in four days with the underlying price
        having climbed to 78.4 (automatically adjusted for
        broker's commissions).


 

What-if Scenario Manipulation

  "The professional option trader will… then 
  examine
a computer evaluation of what the 
  different strike
price and months of options 
  will do under various
market conditions".
 
David L. Caplan, The New Options Advantage.

  Another name for examining your strategy under various
  market conditions is What-if Manipulation. What-if studies
  can be of value both before entering a trade and while in
  the trade, in light of changing current market conditions.


Trade with SOG only one time,  and you will
 never want to trade without it again.

 

    

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