Options trading is a pretty specific market niche, and every trader should come up with his own set of tools, techniques, and strategies suitable for his trading style and skills. While some traders are quite content with just a couple of favorite indicators, you may want to build a more complex setup to spot potentially profitable trades automatically. In this article, we’re going to give you a quick overview of a couple of the most useful automatic tools to spot great trading opportunities.
How these tools work
Many options traders still prefer to analyze the market manually, but there are various tools that allow you to scan data automatically and find the best options without investing too much time and effort. A tool like that is called an options flow scanner. It can scan thousands of potential trades in real time to give you profound insights into the market movements. That’s why they may prove to be an extremely valuable tool, especially for novice traders.
The best of these tools have great performance, feature automatic alerts, and can be customizable to suit your trading strategy. While they are mostly used to scan the market for your day-to-day trading, a scanner like that can be extremely useful in looking for unusual options activity that can be potentially profitable. Let’s take a closer look at the best public scanners affordable for beginners.
Market Chameleon is one of the best online scanners for options. It’s very user-friendly and has a free trial period, so it’s considered a great starting point for beginners who don’t need advanced tools. The scanner allows you to find options with unusual surges in price and volume. There are also all kinds of useful filters and customizable alerts. And if you want to access all the features, the subscription costs just $99.
Mindful Trader is another useful options scanner that also features educational materials for novices and signals from experienced traders. There are no algorithmic signals, but the program is cheaper: just $47 for full access to all the features.
TrendSpider is a pretty universal tool that can be used for technical analysis of many assets, but it’s a great instrument to look for interesting option trades. Of course, it’s very customizable, and there are lots of built-in tools for market analysis. The subscription is just about $55.