SYMBOL BASED RECIPES (9 TOTAL)

Decision Recipe: Comparing Underlying Symbol Price [Video] (optionalpha.com)

This recipe allows you to check if the symbol price is above or below a numerical value.

Example: SPY price is above 400

Comparing Underlying Symbol Properties [Video] (optionalpha.com)

This recipe allows you to check if the symbols underlying criteria are greater than, equal to, or less than a numerical value.

Here are the criteria you can use in this recipe:

Examples: SPY is greater than 100,000 SPY change % is less than 1

Evaluating Underlying Symbol Performance [Video] (optionalpha.com)

This recipe allows you to check if the symbol price has increased or decreased X% since [lookback period]. The lookback period can extend from yesterday to 5 years ago.

Examples: SPY price increased 1% since yesterday SPY price decreased 3% since 3 days ago

Comparing Underlying Symbol Price to an Indicator [Video] (optionalpha.com)

This recipe allows you to check if the symbol price is above or below a .

Moving average lengths range from 5 days to 200 days. Moving average types include SMA, EMA, TRIMA, KAMA.

Examples: SPY price is above 200 day EMA SPY price is below 10 day KAMA

Comparing Multiple Underlying Symbol Indicators [Video] (optionalpha.com)

This recipe allows you to compare if one moving average is above or below another moving average for the same symbol. This recipe allows a user to determine whether a shorter-term moving average is above or below a longer-term moving average by comparing one moving average to another.

Examples: SPY 10 day SMA is above 30 day SMA (possible uptrend) SPY 30 day SMA is below 100 day EMA (possible downtrend)

Evaluating Underlying Symbol Implied Rank (optionalpha.com)

This recipe allows you to check if the symbol IV Rank is above or below a numerical value.

Implied Volatility Rank - Implied volatility rank describes the current level of implied volatility compared to implied volatility over the past year. IV Rank is determined by the formula (( Current IV - Lowest IV (1 year)) / (IV High (1 year) - Lowest IV (1 year))

Examples: SPY IV Rank is above 70 SPY IV Rank is below 30 Evaluating Underlying Symbol Earnings Reporting [Video] (optionalpha.com)

This recipe allows you to check if a symbol reports earnings in more than, less than, or an exact number of days.

Examples: AAPL reports earnings in less than 7 days AAPL reports earnings in exactly 1 day

Evaluating Underlying Symbol Price Probability [Video] (optionalpha.com)

This recipe checks if a symbol’s probability of being above or below price in [days] is more than or less than [%].

Examples: SPY chance of being above 100 in 30 days is more than 90% SPY chance of being below 400 in 7 days is less than 10%

Evaluating Underlying Symbol Probability Within Range (optionalpha.com)

This recipe allows you to check if a symbol’s chance of being between a [low] and [high] value in [days] is more than or less than [%]

The high and low values, number of days, and percentage amount are all numerical and user-defined.

Examples: SPY chance of being between 300 and 500 in 30 days is more than 99% SPY chance of being between 400 and 405 in 7 days is less than 75%

OPPORTUNITY BASED RECIPES (6 TOTAL)

This recipe allows you to check if an opportunity is available and is primarily used when referencing 0 days to expiration opportunities.

Example:

Evaluating Opportunity Return Expectations [Video] (optionalpha.com)

This recipe allows you to check if an opportunity’s rate of return is greater than or less than a specific % value. This recipe is primarily used for filtering opportunities that may not receive enough credit.

Rate of Return Calculation:

Rate of return is calculated as max profit / max loss for all position types, where max loss is defined as the theoretical risk less any premium received.

Example: credit spread where strike width = $2.00 and credit = $0.50

Max profit = 0.5

Max risk = 2.00 - 0.5 = 1.5

Rate of return = 0.5 / 1.5 = 33%

Decision Recipe: Comparing Opportunity Attributes [Video] (optionalpha.com)

This recipe allows you to check if various opportunity criteria are greater than or less than a numerical value.

Examples: Opportunity mark price is greater than .50 Opportunity delta is less than 10

Comparing Opportunity Leg Attributes [Video] (optionalpha.com) This recipe allows you to check if an opportunity’s individual long or short call/put leg’s attributes are greater than, less than, or equal to a numerical value.

Here are all the attributes you can reference for each leg:

Example: Opportunity short put leg open interest is greater than 1

Comparing Opportunity Bid-Ask Spread [Video] (optionalpha.com)

This recipe allows you to check if the opportunity bid/ask spread is less than, equal to, or greater than a value.

Example: Opportunity bid/ask spread is less than .10

Decision Recipe: Evaluating Opportunity Probability [Video] (optionalpha.com)

This recipe allows you to check if the opportunity’s chance of profit, being in the money, or max loss is greater than or less than a percentage value.

POSITION BASED RECIPES (12 TOTAL)

Decision Recipe: Evaluating Position Performance [Video] (optionalpha.com)

This recipe allows you to check if the premium has increased or decreased by [percentage value] since it was opened. The primary use of this recipe is monitoring the premium change of an options position inside of a monitor automation.

“Smart Stops”

This recipe allows you to trail a position with a % based stop on after a target % has been reached. The target percent needs to be hit before the trailing percent triggers.

Comparing Position Time to Expiration [Video] (optionalpha.com)

This recipe allows you to check how many days a position has until expiration by using, greater than, less than, or equal to [number of days].

Decision Recipe: Comparing Position Duration [Video] (optionalpha.com)

This recipe allows you to check how long a position has been open by using greater than, less than, or equal to [number of days].

Evaluating Position Underlying Symbol [Video] (optionalpha.com)

This decision recipe allows you to make decisions based on the underlying symbol of a position. This recipe is used inside your monitor when separating exit conditions for more than one symbol.

Decision Recipe: Comparing Position Properties [Video] (optionalpha.com) This recipe allows you to check if a position’s properties are greater than, less than, or equal to a value.

NOTE: You can also create a custom input for the value, which allows you to input the field later to make the decision recipe dynamic across all automations.

Comparing Position Leg Properties [Video] (optionalpha.com)

This recipe allows you to compare if a position’s specific leg’s properties is greater than, less than, or equal to a value.

Decision Recipe: Evaluating Position Type [Video] (optionalpha.com)

This recipe allows you to check the underlying position type. This recipe helps filter decisions for one strategy type versus another. Because the evaluating position side decision recipe uses information from an existing position inside a bot, it is typically used in monitor automations after a repeater action.

Decision Recipe: Evaluating Position Side [Video] (optionalpha.com)

This recipe allows you to check the direction of your underlying position. Because the evaluating position side decision recipe uses information from an existing position inside a bot, it is typically used in monitor automations and after a repeater action.

Comparing Underlying Symbol Price to Position Leg [Video] (optionalpha.com)

This recipe allows you to check if a position’s underlying price is above/below the long/short call/put strike.

Comparing Bot Position Count to Position Type [Video] (optionalpha.com)

This recipe allows you to check how many positions of a specific strategy type are open.

Example: Bot has more than 5 positions open with short put spread.

Comparing Bot Position Count to Underlying Symbol [Video] (optionalpha.com)

This recipe allows you to check how many positions are open for a specific symbol. This can be helpful when trying to limit the number of open positions in a bot that has multiple symbols.

Examples: Bot has exactly 1 position open with IBM Bot has less than 5 positions open with AMZN

INDICATOR BASED RECIPES (12 TOTAL)

Evaluating Underlying Symbol Indicator Properties [Video] (optionalpha.com)

This recipe allows you to check if the Symbol’s [N-day] indicator is above/below a value.

Here are the indicators currently available: ● The average directional index (ADX) is a used by some traders to determine the strength of a trend.

● The (ATR) is a technical indicator of volatility based on the average of a particular set of trading ranges over a defined number of periods.

● The Balance of Power indicator (BOP) measures the strength of buyers in the market against sellers. ● The Commodity Channel Index​ (CCI) is a -based oscillator used to determine when a security is reaching a condition of being overbought or oversold.

● The Chande Momentum Oscillator (CMO) is a technical momentum indicator invented by Tushar Chande. The formula calculates the difference between the sum of recent gains and the sum of recent losses and then divides the result by the sum of all price movements over the same period.

● The directional movement index (DX) is an indicator developed by J. Welles Wilder in 1978 that identifies which direction the price of an asset is moving.

● An exponential moving average (EMA) is the weighted average of a set of data points where new data points receive greater weight in the average calculation. An exponential moving average is a technical indicator of a trend that responds faster to new data points than a simple moving average because a multiplier is used to give preference to the new data points and reduce lag in responsiveness to price movements.

● KAMA indicator - Kaufman Adaptive Moving Average. KAMA is an abbreviation of Kaufman Adaptive Moving Average. This indicator of was created by an American trader Perry Kaufman, an expert in creating algorithmic trading programs. The KAMA indicator belongs to the group of adaptive moving averages.

● The (MFI) is a technical indicator that generates overbought or oversold signals using both price and volume data. An MFI reading above 80 is considered overbought and an MFI reading below 20 is considered oversold. MFI levels of 90 and 10 are also used as thresholds.

● The Momentum Indicator (MOM) is a leading indicator measuring a security's rate of change. It compares the current price with the previous price from a number of periods ago. The plot forms an oscillator that moves above and below 0. It is an unbounded oscillator with no lower or upper limit.

● Rate of change (ROC) is a technical indicator of momentum that measures the percentage change in price from period to period. Rate of change is also referred to as “momentum” and is often used to confirm trends. For example, when a security reaches a new high but the rate of change does not, then there is a negative divergence between price and momentum.

● The index (RSI) is a technical indicator of momentum that measures the speed and change of price on a scale of 0 to 100, typically over the past 14 periods. Readings over 70 are considered overbought while readings below 30 are considered oversold.

● A simple moving average (SMA) is an arithmetic average of a set of data points where each data point is added together and then divided by the total number of data points. For example, a 10-period simple moving average finds the closing price of the last 10-periods, sums the 10 closing prices, and divides by 10 to calculate the average closing price of the previous 10 periods. New periods are then added to the calculation and the oldest period is deleted from the calculation.

● The Triangular Moving Average (TRIMA) represents an average of prices but places weight on the middle prices of the time period. The calculations double-smooths the data using a window width that is one-half the length of the series.

More information about the indicators used in the platform can be found here: Indicators - Option Alpha Docs

Compare Multiple Underlying Symbol Indicator Properties (optionalpha.com)

This recipe allows you to compare and determine if an indicator from symbol A is above/below an indicator from symbol B.

Example: AAPL 14 day RSI is above QQQ 14 day RSI

Decision Recipe: Comparing VIX Properties [Video] (optionalpha.com)

This recipe allows you to check if the VIX is above/below a value

RECIPE DECISION FAQ’S

Q: What recipe would I use to ensure I am receiving a certain amount of credit when selling a spread?

A: You can use Rate of Return calculation or check for a minimum bid or mark amount

Q: How do I set a stop loss or profit target level?

A: You can use Position return %, market value, or open P/L to define your levels. Q: How do I set a Smart Stop to work alongside a fixed target?

A: The trailing or Smart Stop works first with a trigger amount (75%) and will then trail by a certain percentage.

In the recipe default, if the position reached the 75% trigger, it would then trail 15% below that price.

In this example, you can see we are using 75% as your maximum target, with the trailing stop initiating at 50% with a 25% trailing stop.

Q: How are the indicators calculated?

A: All historical daily indicators in the autotrading platform are cached pre-market based on yesterday's close which makes an indicator a true N-day indicator.

For example, if using a 14-Day RSI the value provided for that indicator will be yesterdays closing value and is calculated by taking yesterday as day 1 and adding the prior 13 days to formulate a 14-Day lookback.

Q: How is the VIX calculated?

A: It compares the reading of the VIX as of yesterday’s close to the referenced value. The VIX is a real-time market index representing the market’s expectations for volatility over the coming 30 days.

Q: What period of time is used when calculating the "change" property shown in this recipe?

A: It's the leg mark change from yesterday's close.

Q: Is there a glossary for some of the terms used?

100s of Options, Stock, & Investing Terms [Glossary] (optionalpha.com)

Q: Is there a way to get a deeper understanding of the formulas being used?

A: Yes! See our Technical Docs: Recipes - Option Alpha Docs