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Value on Strike (PE, Future PE, Dividend Yield and more)
Values on strike are unique measures we created in Samurai to improve on the options trading process. These data points are very useful for buying or selling, but we believe they shine best when selling options.
Options are contracts to buy or sell assets at a specific time and price. Since the underlying asset has values, we 'translate' those values to the strike price of the contract. This lets you see and understand the ramifications of being assigned at that strike price.
For example, PE on Strike tells you what would be the PE ratio of the stock if it would be traded at the strike price. This can tell you if it is cheap or expensive relative to the past.
Options are contracts to buy or sell assets at a specific time and price. Since the underlying asset has values, we 'translate' those values to the strike price of the contract. This lets you see and understand the ramifications of being assigned at that strike price.
For example, PE on Strike tells you what would be the PE ratio of the stock if it would be traded at the strike price. This can tell you if it is cheap or expensive relative to the past.
In the picture above, we can see that AAPL PE ratio is 28.54. We can also see how the PE on strike value changes in each strike. If we want to buy the stock with a PE ratio of less than 25, we know that strike 315 will give us the best return and we found it with a few clicks (we can also save our watchlist and then we will never miss an opportunity to sell put at the right price.
Some other use cases can be:
Some other use cases can be:
- Sell puts on dividend aristocrats if div yield is higher than 5%, and the payout ratio is less than 50%, and the return is more than 10% yearly.
- Sell calls/puts more than two standard deviations from the current price if the annual return is more than 20%
- Sell puts where future PE is below 20, and the return is above 10%.
Sell call spreads where stikes are above 52 w high, and profit ratio is greater than 25%. - Buy calls that the strike is more than 25% from the analysts' target price. This gives us a great way to find options that have a large 'runway.' (can also use the scenario engine for this)
- And many more.
These data points can be incorporated with any strategy and any other data point. You can also save the scan to access it from your dashboard easily.
How to find all 'On Strike' values?
To find all the 'On strike' values, go to the 'Add filter' window and search for 'on st' and you'll see all the options.
Available 'on strike' values:
- Dividend Yield on Strike
- PE Ratio on Strike
- Future PE Ratio on Strike (the earnings is calculated with Analysts' projections)
- Moving Average 200-days on Strike
- 52 Weeks Low on Strike
- 52 Weeks High on Strike
- Distance from Target Price on Strike
- Standard Deviation on Strike
- ATR on Strike
If you need help, you can see more information about those data fields in the 'add filter' window.
Read more:
- Read about the different data points: Article in KB
- See example use cases (Section in KB)
- Options Scanner
- Go to the Platform
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