VolRadar

VolRadar is an innovative daily options analytics platform designed specifically for premium sellers—traders who utilize strategies like iron condors, credit spreads, cash-secured puts, and the wheel on S&P 500 stocks. By leveraging institutional-grade data sourced from ORATS, VolRadar delivers essential insights to its users. Every evening after the US market closes, the platform aggregates end-of-day options data, processes it through advanced models, and provides a pre-market brief. This allows traders to make informed decisions quickly each morning, identifying which tickers are optimal for selling and which to avoid. With features like the Weather Score and volatility rank, VolRadar empowers traders to maximize their profitability while minimizing the time spent on research, making it an indispensable tool for serious options traders.

Weather Score

The Weather Score is a unique composite score ranging from 0 to 100 that evaluates market conditions for premium selling. It combines critical factors such as Premium Edge, VIX, Volatility Trend, Earnings Safety, and Term Structure. This single score allows traders to assess whether it's a favorable day to sell options quickly, streamlining their decision-making process.

IV Rank

VolRadar calculates the Implied Volatility (IV) Rank based on a 252-day lookback period on the 30-day ATM IV. This feature helps traders understand the relative volatility of options for specific tickers, enabling them to identify which options are overpriced or underpriced and thus, which to trade.

VRP (Volatility Risk Premium)

The VRP feature represents the difference between the 30-day IV and the 20-day realized volatility. This metric is crucial for premium sellers, as it helps them gauge the potential profitability of selling options. A positive VRP indicates that the market is pricing options higher than what historical movement would suggest, signaling a good opportunity for premium selling.

Computed Strikes

This feature provides users with pre-calculated strike prices tailored to their trading strategies, including target delta and target credit. By offering computed strikes, VolRadar simplifies the trade setup process, allowing traders to focus on execution rather than calculations.

Daily Trading Preparation

Traders can use VolRadar to prepare for their trading day by checking the Weather Score and identifying favorable conditions for premium selling. This quick assessment allows them to enter the market with confidence, knowing which strategies to implement based on current data.

Strategy Development

Options traders can leverage VolRadar's comprehensive analytics to develop and refine their trading strategies. By analyzing the IV Rank and VRP of various tickers, they can tailor their approaches to maximize returns based on market conditions.

Risk Management

VolRadar equips traders with the necessary tools to manage their risk effectively. By understanding the earnings safety of different stocks and the prevailing volatility, they can make informed decisions about which trades to pursue and which to avoid.

Trade Execution

Once traders identify the best candidates for premium selling, they can utilize the computed strikes feature to execute trades efficiently. This aspect of VolRadar eliminates the guesswork involved in strike selection, allowing for seamless trade execution.

What is VolRadar?

VolRadar is a daily options analytics platform aimed at premium sellers, providing insights from end-of-day options data and analytics to streamline the trading process.

How does the Weather Score work?

The Weather Score is a composite metric that evaluates multiple factors affecting options trading, giving a clear indication of whether it is a good day to sell premium based on market conditions.

What is the significance of IV Rank?

IV Rank helps traders understand the current implied volatility of options compared to its historical levels. A higher IV Rank indicates that options are more expensive than usual, presenting opportunities for premium selling.

Can I use VolRadar for free?

Yes, VolRadar offers a free tier that includes the Weather Score, four calculators, and a basic scanner. Users can upgrade to the Starter plan for additional features like the full scanner and pre-market brief.