Generating Option Trading Ideas

using Fidelity’s Tools & Resources

Presented by:
Trading Strategy Desk

1 Fidelity Brokerage Services, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917. © 2016 FMR LLC. All rights reserved. 700857.2.0
 Disclosures
 Options’ trading entails significant risk and is not appropriate for all investors. Certain
complex options strategies carry additional risk. Before trading options, please read
Characteristics and Risks of Standardized Options, and call 800-544- 5115 to be approved
for options trading. Supporting documentation for any claims, if applicable, will be
furnished upon request.

 Examples in this presentation do not include transaction costs (commissions, margin

interest, fees) or tax implications, but they should be considered prior to entering into any
transactions.

 The information in this presentation, including examples using actual securities and price
data, is strictly for illustrative and educational purposes only and is not to be construed as
an endorsement or recommendation.

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 Goal of this webinar:
To educate traders about different ways to leverage Fidelity’s tools and resources to find
option trading opportunities.

What we will cover:

 Introduce a Trading Plan

 Review different approaches to screening:

 S&P Screener and Best 10 (provided by S&P Capital IQ)
 Strategy Ideas (Provided by Livevol, Inc.)
 Market Scanner (Provided by Livevol, Inc.)
 Expert Option Analysis/Intraday Trade Ideas (Provided by Livevol, Inc. & S&P Capital IQ)
 Stock screener
 ATP filters

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 Have a Trading Plan in Place!

 Identify your outlook

 Decide how to trade that outlook

 Evaluate the trade idea

 Monitor and re-evaluate the trade at specific points

 Have an exit strategy in place

 Profit targets
 Loss threshold

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 Tools for Generating Option Trading Ideas

S&P Screener &

Best 10 Covered Calls / Calendar Spreads

 Identifies specific covered call and diagonal spread trading ideas

 Screener is used to refine opportunities

 Report provided for rationale

 S&P provides rating on strategies

Best 10 - Covered calls and calendar spreads selected daily by analysts at S&P. These are based on options related to
underlying stocks with a minimum S&P Key relative risk ranking of 3 Keys. S&P Key relative risk ranking of 3 Keys.
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 S&P Best 10 - Report Finder (Provided by S&P Capital IQ)

*Fidelity.com – For Illustrative Purposes Only

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 Report Finder (Provided by S&P Capital IQ)

*Fidelity.com – For Illustrative Purposes Only

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 S&P Options Report (Provided by S&P Capital IQ)

*Fidelity.com – For Illustrative Purposes Only

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 Tools for Generating Option Trading Ideas

Strategy Ideas

 Filters that assist with selecting option strategy based on your own outlook

 Strategy specific screens

 Security specific option strategy screens

 Real-time opportunities

 Provides description of strategy

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 Strategy Ideas (Provided by Livevol, Inc.)

*Fidelity.com – For Illustrative Purposes Only

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 Strategy Ideas (Provided by Livevol, Inc.)

*Fidelity.com – For Illustrative Purposes Only

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 Strategy Ideas (Provided by Livevol, Inc.)

*Fidelity.com – For Illustrative Purposes Only

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 Tools for Generating Option Trading Ideas
Market Scanner
 Scan for specific option contracts with underlyings that meet your criteria

 Pre-built option scans

 Create your own customized scan to find trading ideas

 Real-time opportunities

 Pre-built scans sorted by type of scan

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 Market Scanner (Provided by Livevol, Inc.)

*Fidelity.com – For Illustrative Purposes Only

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 Market Scanner (Provided by Livevol, Inc.)

*Fidelity.com – For Illustrative Purposes Only

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 Tools for Generating Option Trading Ideas

Expert Option Analysis

Intra-day Trade Ideas

 Contributors share the opportunities they have found

 Idea generation and educational resources

 Shares their methodology for screening opportunities

 Archives of ideas to reference later

*Expert Option Analysis provided by Livevol, Inc

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 Expert Option Analysis (Provided by Livevol, Inc.)

*Fidelity.com – For Illustrative Purposes Only

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 Expert Option Analysis (Provided by Livevol, Inc.)

*Fidelity.com – For Illustrative Purposes Only

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 Intra-Day Trade Ideas (Provided by S&P Capital IQ)

Fidelity.com – For Illustrative Purposes Only

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 Tools for Generating Option Trading Ideas

Stock Screener

 First the security, then strategy approach

 Security fits specific criteria

 Vast amount of criteria to select from

 Scan for ETFs as well

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 Stock Screener

*Fidelity.com – For Illustrative Purposes Only

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 Stock Screener

*Fidelity.com – For Illustrative Purposes Only

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 Tools for generating option trading ideas

ATP Filters

 Real-time opportunities

 Access to pre-built and customized scans

 Technical events scans

 General market scans

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 ATP Filters

*Active Trader Pro – For Illustrative Purposes Only

Technical analysis focuses on market action — specifically, volume and price. Technical analysis is only one approach to analyzing
stocks. When considering which stocks to buy or sell, you should use the approach that you're most comfortable with. As with all your
24 investments, you must make your own determination as to whether an investment in any particular security or securities is right for
you based on your investment objectives, risk tolerance, and financial situation. Past performance is no guarantee of future results.
 Generating Option Trading Ideas
Points of emphasis:
 Strategy ideas presented may not fit your risk tolerance, trading style, etc.
 If a strategy idea interests you, the next step is to evaluate the trade with your own
process
 Think of the strategy ideas as a starting point
 Position management will minimize the impact of one trade on the overall portfolio
 Set an exit strategy, and consider points to re-evaluate the trade
 Contact Fidelity with questions concerning the evaluation and analysis process
 Fidelity.com Learning Center (Courses, Webinars, Articles, etc.)
 Trading Strategy Desk

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 Key Takeaways
 Have a trading plan in place…and follow it!
 Several different tools and resources available to find opportunities:
 S&P screener (Provided by S&P Capital IQ)
 Strategy Ideas (Provided by Livevol, Inc.)
 Market Scanner (Provided by Livevol, Inc.)
 Expert option analysis/intraday trade ideas (Provided by Livevol, Inc. and S&P Capital IQ)
 Stock screener
 ATP filters

 Strategy ideas is just a starting point

 Manage your position size relative to the portfolio and have an exit strategy

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 Generating Option Ideas using Fidelity’s Tools and Resources
This concludes today’s Presentation

Thank you for attending!

Find the next interactive classroom session with the Trading Strategy Desk here
(registration is limited):
https://www.fidelity.com/learning-center/events/interactive-classroom-sessions

To Register for another educational webinar, please visit the Fidelity.com Learning Center
https://www.fidelity.com/learning-center/events/overview

For additional support, please contact a Fidelity representative at (877) 907-4429

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