Time Range Selection is important when picking the right options with the optimal strike prices because the profit often hinges on the stock reaching the strike of the option by certain time. Probability Calculator helps determine the optimal strike prices for placing options trades. The image below shows that the target price for Packaging Corp. of America (PKG) is $80.83.

On the other hand, if you are bullish on the stock, you can see the probability of the stock reaching $109.13. If there is a 87.72% Probability of a stock reaching $109.13, and you are also bullish based on our Trend Rating at a 9 and Long-term Rating at 9, then you can consider buying $80 call option. Strike Price selected is $80.

What if you are bearish on the stock? You might buy $110 put options because you know that there is a 87.72% Probability of the stock being between $80.83 and $109.13. Tradespoon’s recommendation services also send you daily and weekly trade ideas that include the estimated move of the underlying asset and the expected price of the stock for varying time horizons.  Tradespoon’s tools can show predictions of where the stock is going to be on the next day, the next 5 days, and the next 50 days.

A Directional Bias, whether Bullish or Bearish, is important and keep an eye on volatility. Normally, higher the Volatility, the higher the premium of the options and that will also help determine your Strike Price selection. Technical Analysis or Tradespoon Predictive Analytics take into consideration and help with better quantifying Risk, Volatility, and Strike Price Selection.