Options Suitability
Options Suitability evaluates market volatility and liquidity to help identify favorable or unfavorable market conditions based on current momentum.
How It Works
We analyze volatility (e.g., ATR) and open interest, classifying conditions as Directional, Neutral, or Non‑Tradable.
Examples
- Directional High Volatility: Suggests trend‑following momentum alignment like selling OTM calls in a strong downtrend.
- Neutral High Volatility: Suggests range-bound momentum such as straddles/strangles.
- Low Volatility: Implies minimal premiums; consider non‑directional plays or avoid options.
⚠️Important Clarification
- •Options suitability refers only to momentum alignment at the current time.
- •It does not constitute a trade recommendation, buy/sell call, or prediction of price movement.
- •A "CE-favorable" or "PE-favorable" label does not indicate an instruction to trade.
- •It only reflects directional momentum alignment based on trend context at that moment.