The Methodology Behind My Advisory Strategy
This is the options engine behind every recommendation I make: the signals I watch, the risk controls, and the data behind each call. It's separate from the equity and income research I publish on the Research page.
How I Work
What goes into every call
The data and the tools I use to analyze each trade.
Every call runs through my own analytics engine, the Option Sentiment Score (OSS), along with a set of quantitative tools.
Option Chain Analysis
Open interest, volume, bid-ask spreads
Implied Volatility
IV percentile, IV rank, term structure
Option Flow Analysis
Large institutional trades and positioning
Greeks Analysis
Delta, Theta, Vega, Gamma optimization
Option Sentiment Score (OSS)
My own scoring system. It combines several data streams into one clear signal for each potential trade.
Probability Assessment
OSS evaluates the statistical probability of profit based on historical patterns and volatility.
Risk Quantification
Every trade is scored for downside risk, so I can skip the ones where the odds aren't worth it.
Optimal Execution
OSS guides strike selection, expiration timing, and entry points.
Risk Management Framework
Capital preservation comes first. These are the rules that keep risk in check.
Position Sizing
No single position exceeds defined capital limits. Diversification across instruments and expiration dates.
Diversification
Spread across indices and large-cap instruments to avoid concentrated single-stock risk.
Liquidity Focus
Trade only in highly liquid options markets to ensure efficient execution and tight spreads.
Tools & Technology
The analytics run on a modern, reliable stack that I built and maintain myself.
Python Analytics
Custom scripts for data processing and signal generation.
Real-Time Dashboards
Tableau and custom visualizations for market monitoring.
Automated Pipelines
Continuous data ingestion for real-time decision support.
# OSS Signal Generation
def calculate_oss(symbol, expiry):
"""
Compute Option Sentiment Score
"""
iv_score = analyze_volatility(symbol)
flow_score = analyze_option_flow(symbol)
oi_score = analyze_open_interest(symbol)
# Weighted composite score
oss = (
iv_score * 0.35 +
flow_score * 0.35 +
oi_score * 0.30
)
return normalize(oss, 0, 100)