1. How to Find The Ultimate Option Trades with SmartSearchXL®
Ernie Zerenner
PowerOptions® –
Copyright 2006 Power Financial Group

2. Conceptually… Self-Directed investors
Often know what options strategy to use
i.e. Covered Calls, Vertical Spreads
Need tools to find the best opportunities
Find options investments based on
Stock
Option
Technicals
Fundamentals
The Patented SmartSearchXL® is that tool.
As option investors we often know the strategy we want to use.
But we need the tools to help us find the best opportunities.
A tool was needed to find options related investments based on the underlying stock, option, and technical characteristics.
Options investing is rather unique. It involves not only the underlying company and all their fundamentals but also the option dynamics, which has multiple strikes and months to deal with.
Copyright 2006 Power Financial Group

3. Results…SmartSearchXL®
Search every option combination
Search stocks, options, fundamentals, and technicals simultaneously.
Results in seconds
Finds the best trades
Orders the results your way
Over 2,700 stocks, indexes, ETF’s HLDRs, SPDRs
Over 170,000 options
You don’t have to find a stock first they use a different set of tools to find the option.
Copyright 2006 Power Financial Group

4. SmartSearchXL cont’d. Web-Site vs. Installed Application
Built-In Data vs. Separate data feed
Available anywhere vs. on 1 computer
No data to download
No programming needed
No separate fees
Searches 20 option strategies
Because it is on the Internet it can be updated and enhanced transparently.
No extra fees to get data, program updates, maintenance, or new features
Available anywhere: Used by traders in over 60 countries
Data is available on line another source not needed
You do not have to be a computer programmer to use PowerOptions
Copyright 2006 Power Financial Group

5. Simple Search Criteria
Wanted to go out only 1-2 months in time.
Wanted an annual return of 20% min. if assigned or if unchanged.
Wanted downside protection of 5% min.
Wanted to be sure there were no earnings announcements due during the CC.
Preferred ATM or slightly OTM to avoid assignment.
Initially I just searched for options in Hewlett Packard stock because that is what I owned, but what was the best month and strike What strike price to write?
If you already know the stock then a sophisticated option chain can suffice.
Copyright 2006 Power Financial Group

6. Detailed Search Criteria
Less than 65 days to expiration.
In a technical uptrend, stock price > 50 day moving average
Listed as part of S&P Five Stars
No earnings due in holding time
Open interest > 100 and Volume > 5
Covered call buy/write used as the example, but don’t get hung up on the option strategy over 20 strategies are possible.
Copyright 2006 Power Financial Group

7. Other Option Search Criteria
Implied volatility or % IV Range
Over or under valued based on B/S
Put / Call ratio
Greeks like Delta
% of option volume compared to avg.
% ITM or % OTH strike prices
Probability of assignment
These are primarily option related criteria
Copyright 2006 Power Financial Group

8. Other Stock Related Criteria
% Earnings growth
Market Capitalization
Price/Sales or Price/Earnings
Historical Volatility
Average Broker Recommendations
% of 52 Week Price Range
% Dividend Yield
These criteria are more stock related Fundamentals
Copyright 2006 Power Financial Group

9. Example Criteria Setup
Start with Default parameters
Change the limits on some parameters
Select a stock list to scan or delete
Set technical parameters like MA
Save your settings
Submit your settings and be Wowed
If the previous slides looked confusing or too detailed, I am an engineer by background and want to control all these details. However,
The default parameters are available on every strategy to help you get started. You will get credible results just by going to a SmartSearchXL page.
This tool is really very easy to use and will dramatically improve your ability to find opportunities.
We expect that most investors will develop their own criteria
Copyright 2006 Power Financial Group

10. All fields are blank can set greater than and less than
Area for fundamentals
Area for technicals
Area for options related
Area for ITM and OTH
Copyright 2006 Power Financial Group

11. Typical Search Report Everything you need to research and trade
11 columns by default plus, up to 30 additional columns
A “more info” button for more research:
Charts, news, strategy graph, stock and option research, implied volatility graph
BrokerLink: Place trades through optionsXpress
After you submit the settings you get a report in seconds
Report is customizable by what is shown and order of the columns
Details of option symbol, price, return
Will show an example of the more info button in a later slide
Again the idea is that a few clicks gets you anything you want
Once you found a selection, the BrokerLink allows fast access to place the order.
Copyright 2006 Power Financial Group

12. Note the more info key on the left for reference
Idea was to have more information only 1 or 2 clicks away
Copyright 2006 Power Financial Group

13. More Info Expansion Company profile, earnings, dividends
Add a paper portfolio
Link your trade directly to optionsXpress
One click access to other info
Copyright 2006 Power Financial Group

14. Summary
SmartSearchXL helps you find option trading opportunities that meet your specific criteria.
Search the entire options universe in seconds.
SmartSearchXL technology is easy to use, unique and patented.
Copyright 2006 Power Financial Group

15. Frequently asked Questions
How to select the numbers?
How do I navigate the site and find what I want?
Will a subscription pay with added profits?
How can I try it without obligation?
Select numbers: We have default values otherwise leave them blank until you know what you want.
Navigate: We help with a toll free number.
Help pages on strategy and use.
Online
Will it pay: I literally make thousands of dollars every month writing covered calls the subscription fee is in the noise (VERY SMALL).
Try it: We have a 30 day free trial for conference people to see how the site meets your needs.
Copyright 2006 Power Financial Group

16. www.PowerOpt.com/oxp2/ 30 day free trial
Toll free help on the use of the site.
in USA
Sign up at
Copyright 2006 Power Financial Group