Start Backtesting Options Strategies: A Good Way to Learn

Posted by ORATS Team on 8/22/18 10:39 AM

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Get started backtesting options strategies and improve your options knowledge. You will get a feel for what works, what is too risky for you, and ultimately what you want from options trading.

Backtesting will help you define your goals, choose your strategies, and set your risk tolerances.

Take, for example, the following trading strategies in the popular ETF on the S&P500 SPY. Using the ORATS Wheel system for backtesting options, we have compiled a quick list of  strategies.

What looks best for YOU of these popular strategies?

Note: these returns are based on notional or stock price as the denominator. The rules for the strategies can be seen in the links below.

Short Strangle (unlimited losses to upside and downside)

Short Put (bullish, unlimited losses downside)

Short Put Spread (bullish, limited losses downside)

Iron Condor (limited losses to upside and downside)




Written by ORATS Team

ORATS is a premier options analytics vendor committed to uncovering untapped alpha-generating solutions. ORATS utilizes an advanced, proprietary volatility analysis to produce implied, forecast, and historical volatilities that have been proven to be more accurate market summarizations than those obtained from most commonly available sources.

Topics: Markets

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