Table of Contents

Chapter 1:  Introduction. 3

Chapter 2:  Features. 4

Chapter 3:  Strategy Analyzer. 6

Chapter 4:  Technical Analysis. 11

Chapter 5:  Pattern Screener. 15

Chapter 6:  Strategy Screeners. 16

Chapter 7:  Custom Strategy Screeners. 19

Chapter 8: Calculators. 29

Chapter 9:  User Registration. 33

Chapter 10:  APPL. 35

Chapter 11: Web Services. 36

Chapter 12: FAQ.. 37

Chapter 13: Additional Information. 39

 



Chapter 1:
Introduction

Option trading is an investing activity that has become very popular in recent years.

An option is a contract to buy or sell a specific financial product officially known as the option's underlying instrument or underlying interest. For equity options, the underlying instrument is a stock, exchange-traded fund (ETF), or similar product.

The contract has a specific price, called the strike price, at which the contract may be exercised, or acted on. And it has an expiration date. When an option expires, it no longer has value and no longer exists.

Options come in two varieties, calls and puts, and you can buy or sell either type. You make those choices - whether to buy or sell and whether to choose a call or a put - based on what you want to achieve as an options investor.

As with any form of investing, there are risks involved in trading options; however, there is also the opportunity to have a higher returns.

 Avasaram is a powerful platform that includes several option trading analysis tools that you can use to minimize the risks and maximize returns associated with trading options. You can quickly and easily use the browser-based interface to track option prices, analyze market data, create custom screeners, and much more.

Contents of this Guide

This user’s guide contains all the information you need to understand the Avasaram features. The guide is divided into the following chapters:

w  Chapter 1: Introduction – A summary of options trading and how to access Avasaram

w  Chapter 2: Features – Overview of key features of the Avasaram platform

w  Chapter 3: Strategy Analyzer – Details about feature for running trading strategies

w  Chapter 4: Technical Analysis – Details about how to use the Avasaram analysis tools

w  Chapter 5: Pattern Screener – Details about filtering stocks according to specific patterns

w  Chapter 6: Strategy Screeners – Details about using strategic screeners

w  Chapter 7: Custom Strategy Screeners – Details about how to create custom screeners

w  Chapter 8: Calculators – Details about using the Avasaram stock evaluation calculators

w  Chapter 9: User Registration – Details about registering to use Avasaram

w  Chapter 10: APPL – Summary of using the Avasaram Platform Programming Language

w  Chapter 11: Web Services – Summary of using the Avasaram RESTful web services

w  Chapter 12: FAQ – Frequently asked questions by Avasaram users

w  Chapter 13: Additional Information – Details about miscellaneous Avasaram information

 

 


Chapter 2:
Features

The tools within the Avasaram platform enable you to make informed investment decisions. All you need to get started is a web browser, an internet connection, and a list of one or more stocks you want to evaluate.

This chapter provides an overview of the general and advanced features that are available to you when you use Avasaram.

General Features

The following advanced features are available in Avasaram.

w  Support for American, Canadian and Indian stock Exchanges.

w  Fully customizable screeners to suit your needs.

w  Data updated multiple times daily.

w  Create and test different option strategies.

w  Save your strategies for future references/analysis.

w  Visually analyze the potential risks and return associated with a strategy.

w  Automatically download data.

w  Easily modify parameters to test "what-if" scenarios.

w  Easy-to-use screens that enable you to configure your strategies with great flexibility.

w  Easy to read charts with tool tips:

§  Time versus P/L

§  Stock Price versus P/L

§  Volatility versus P/L

§  Time versus Delta

§  Stock Price versus Delta

§  Volatility versus Delta

§  Time versus Gamma

§  Stock Price versus Gamma

§  Volatility versus Gamma

§  Time versus Theta

§  Stock Price versus Theta

§  Volatility versus Theta

§  Time versus Vega

§  Stock Price versus Vega

§  Volatility versus Vega

w  50+n built-in option strategies that you can modify and add to your list.

w  Technical analysis with a variety of tools in a single location.

 

Advanced Features

You have access to the following advanced Avasaram tools.

w  Stock evaluation calculators (see “Chapter 8: Calculators” ):

§  Calculate option Greeks (Delta, Gamma, Theta, Vega, and Rho).

§  Calculate returns and break-evens for a variety of vertical spread option strategies.

§  Calculate pricing based on the Black-Scholes model to compute fair option prices.

w  Strategy Screeners (see “Chapter 6: Strategy Screeners”):

§  Scan for 50 plus Candlestick patterns with Candlestick Pattern Finder.

§  Scan for high premium Covered Call and Covered Put Strategies.

§  Scan for high probability Naked Call and Naked Put Strategies.

§  Scan for high return Vertical Debit Spreads and Vertical Credit Spreads.

§  Scan for high return Calendar Spreads.

§  Scan for high return Butterfly Spreads.

§  Scan for high return Condor Spreads.

§  Scan for high return Collar Spreads.

§  Scan for high return Married Put and Call Spreads.

§  Scan for high return Diagonal Spreads.

w  Strategy Analyzer - Details about feature for running trading strategies (see “Chapter 3: Strategy Analyzer)

w  Filter stocks according to specific patterns using the Pattern Screener (see “Chapter 5: Pattern Screener)

w  Web Services

§  Enable third-party applications to interface with the Avasaram platform. (see “Chapter 11: Web services”)

w  APPL     

§  Create advanced filters and display columns using Avasaram Platform Programming Language (APPL) (see “Chapter 10: Strategy Screeners”)

 


Chapter 3:
Strategy Analyzer

The Avasaram Option Strategy Analyzer is a powerful and flexible tool for creating and analyzing option strategies. You can create your own strategies or choose from a set of standard strategies that you can modify to suit your needs. You can also simulate various what-if conditions with the Option Strategy Analyzer.

The Option Strategy Analyzer page consists of seven sections.

Section 1

In this section of the tool you select a strategy to load from the tree. Standard Strategies are the strategy templates which are generally used for training. This could also be modified and saved for later use.  User Strategies are those you create and save. Once you select a strategy, the fields on the screen are filled with the data for your chosen strategy. At any time, you can change the Strategy Name to save the strategy with a different name.


In this section, you can also download the option chain for a stock by entering a valid ticker in the space provided and clicking the Download Option Chain button. A window opens with a list of all the current call and put option contracts that are available for the stock.

Note: The XYZ stock that is used in standard strategies does not exist. You will not be able to download data for this ticker.

The option chain pop up window includes the following columns of data for the specified stock:

·         Expiration month – The date on which the option expires. You will need to scroll down the list to see options for other dates.

·         Strike – The exercise price (when the stock is bought or sold).

·         Symb – The ticker symbol for each stock option.

·         Last – The most recent price at which an option was traded (opened or closed), but not necessarily the current market price since the transaction may have taken place as far as way as several weeks or a few minutes.

·         Bid – The most current price that a buyer is willing to pay for the option.

·         Ask – The most current price that a seller is willing to accept for the option.

·         Vol – The total number of contracts that have been traded for the current day.

·         Open Int – The current total of outstanding option contracts for the stock.


Section 2

This section contains the Interest Rate, Volatility, Trade Date, and Price on Trade parameters for the stock. You have the option to Allow Option Price to be Entered Manually or Allow Implied Volatility to be Entered Manually. All of the parameters are mandatory.

When manually entering the Trade Date, use the format mm/dd/yyyy. You also have the option of selecting a date by clicking the calendar icon located next to the Trade Date field.

 

Section 3

In this section you can control how the strategy position is calculated. You can choose to edit the implied volatility or the direct price of a leg. The bottom section contains information about the strategy legs. Optionally, you can delete one or more strategy legs by clicking the delete link.

This section contains the following data:

·         Name – The name assigned to the option

·         Expiry – The option’s maturity (expiration) date

·         Type   The type of option (Call, Put, or Stock)

·         Qty – The number of options

·         Position – The option position (Long or Short)

·         Impl. Vol – The implied (estimated) volatility of the option.

·         Price per Contract – The cost to purchase a single contract

·         Net Value – The value of the position

 


Section 4

This section includes the following buttons that you can select to manipulate your current strategy:

·         Add Leg – Click to add a new leg to a strategy

·         Update Screen button – Click to refresh the screen to show any changes you have made

·         Clear Screen button – Click to remove the current data to prepare for a new strategy

·         Save Strategy button – Click to save the current strategy (available to only registered members)

·         Delete Strategy button – Click to delete any unwanted strategies. You can only delete those strategies that you have created and saved.

Section 5

This section includes controls for the parameters used at the time of evaluation. For a positive change in volatility, add a plus sign (+) before the number. For negative change add a minus sign (-) before the number. For example, a +20 volatility value indicates that volatility has increased by 20 and a -20 value means volatility has decreased by 20.

You can control what is plotted by selecting appropriate entries on the X axis and Y axis. You could change the X axis range by changing the X-Axis Start and X-Axis End values. If you choose to leave the X axis range at "0" or empty, the system will use the default values. The Plot Legs checkbox should be unchecked if you are not interested in plotting the legs.

 


Section 6

This section is displayed when you click the Analyze Strategy button located just under section 5. This section shows the plotter points for the strategy. The plot legend is shown at the bottom of the chart. You can also place your mouse at specific plot points to obtain the value at that coordinate.

Section 7

This section displays the Max Profit, Max Loss, Break Even Points, and the X axis Steps used to plot the points for the strategy.


Chapter 4:
Technical Analysis

 

There is no single way to make decisions about stocks and options. Performing technical analysis using several different chart methods is considered a reliable method for extrapolating data to make future trading decisions. The Technical Analysis link in the Avasaram navigation menu opens a page that allows you to perform technical analysis using four popular stock charting tools: Candlestick, OHLC, and Line.

The chart is interactive. As you hover over a specific point on the graph, a darkened circle moves with the mouse. The price and total volume at that point in time are displayed.

 
To plot a technical analysis chart
  1. Enter the ticker symbol of the stock whose price you want to chart.
  2. Select an analysis tool: Candlestick, OHLC, or Line.
  3. Optionally, select additional analysis tools:
  4. Enter a date range in the Custom period fields located at the bottom of the screen.

The technical analysis tools are explained in the following sections.


Candlestick

The candlestick chart plots data points for four key price fluctuations of a stock: the high, low, open, and close. The plots form a candlestick with three parts: upper shadow, real body, and lower shadow.

Upper Shadow – Also referred to as the top wick of the candle, the vertical distance between the high and close form the upper shadow of the pattern.

Real Body – The middle of the candlewick pattern that corresponds to the vertical difference between the open and close price for the stock. This section is colored red or green; red indicating the close price is lower than the open price and green indicating the close price is higher than the open price. Typically, the width of the Real Body is indicative of the control. A red Real Body indicates a bearish perspective and a green Real Body indicates a bullish perspective.

Lower Shadow - The lower wick of the candle that vertical lower shadow.

 

The Candlestick chart enables you to obtain a quick interpretation of the variation of a stock price. It is useful for identifying turning points for a stock.

 


OHLC

The Open, High, Low, Close (OHLC) chart is similar to the Candlestick chart in that it plots the four phases of the stock price for the ticker and custom period you specify.  The visual for this chart consists of a single vertical line with a tick mark on the left and right. The highest and lowest points of the vertical line denote the High and Low price, respectively. The tick marks represent opening and closing price, respectively. As with the Candlestick chart, the lines are colored in red and green.

This chart gives you a quick glance at how a price has fluctuated over a specific period of time, which shows its average. This chart is particularly beneficial for determining how a stock responds throughout the day.

Line

The Line chart is a solitary line that plots the closing price from one point in time to another. This chart is an excellent tool for viewing the trend in price for a stock. With a quick glance you can determine whether a stock price is moving up (bullish) or moving down (bearish). If the price fluctuates, it is typically considered volatile.


Candlestick Patterns

When performing technical analysis in Avasaram, you have access to more than 50 candlestick patterns that you can use with the Candlestick, OHLC, and Line charts to plot additional movements in stock prices.

Technical Indicators

Technical indicators are statistical tools that you can use to perform analysis on stocks for the purpose of completing two important investment tasks: maximizing profits and minimizing losses. When you use the technical analysis tools in Avasaram, you can add one or more technical indicators to enhance the accuracy of the predictions. The following table includes the technical indicators that are available in Avasaram.

Technical Indicator

Description

Moving Average

Shows the average price for a specific period of time.

Exp Moving Average

Similar to the Moving Average. The average is impacted by the most recent price.

Bolinger Bands

Combines Moving Averages with Upper Band (two standard deviations that exist above the Moving Average) and Lower Band (two standard deviations below the Moving Average) strategies to show the strength of a trend.

MACD

Moving Average Convergence/Divergence. Indicates trends in strength, momentum, direction and duration for the price of the stock.

RSI

Relative Strength Index. Indicates the momentum of how fast a stock moves and changes. The standard values for RSI are zero to 100. If RSI reaches more than 70, it is generally considered overbought. If RSI dips below the 30 mark, it is generally considered oversold.

MFI

Money Flow Index. Indicates the rate that money flows into (invested in) and out of (withdrawn from) a security.

William %R

Momentum that looks at extended levels (oversold and overbought)  for the purpose of comparing the high and low range for a specific period of time (about two weeks).

Fast Stochastic

Based on a curve that consists of a %K line (n period) and %D line (m period) to show the location of the closing price in relation to the total price range of the periods specified for the lines.

Slow Stochastic

Similar to the Fast Stochastic, but less reactive to movements in price.

 

 


Chapter 5:
Pattern Screener

The Pattern Screener page is where you screen stocks based on a particular Candlestick Pattern. The Avasaram platform includes a variety of patterns.

 

To plot a technical analysis chart
  1. Select a Candlestick Pattern from the drop-down list.
  2. Enter the number of days you want to use for your filter.
  3. Optionally, enter the ticker symbol of the ticker(s) you want to Include or Exclude. Note: separate multiple tickers with a comma.
  4. Click the Find button.
  5. A table is displayed with the results of your filter. Click the Chart link to open the Technical Analysis page where you can view an interactive chart of you the selected screen.

Chapter 6:
Strategy Screeners

The Strategy Screeners page allows you to select criteria for determining opportunities that may be available in the stock market. Avasaram allows you to use any of the 28 pre-set strategy screeners that are available in the platform or create custom strategy screeners that are based on your specific settings. This chapter focuses on the preset screeners. See “Chapter 7: Custom Strategy Screeners” for details about creating your own strategy screeners.

To address a variety of scenarios, the Avasaram pre-set strategy screeners cover the three types of investment strategies: bullish, bearish, and neutral. For a detailed description of each strategy screener, select the Tutorials tab and click the link for the option strategy for which you want more information.

The following is an example Bear Call Screener.


Bullish Strategy Screeners

Bullish strategy screeners are ideal for investors who are bullish toward an option (expect the price of an underlying asset to go up).

·         Bull Call Spread

·         Collar

·         Covered Call

·         Diagonal Call Spread

·         Married Call

·         Naked Call

·         Naked Put

Bearish Strategy Screeners

Bearish strategy screeners are ideal for investors who are bearish toward an option (expect the price of an underlying asset to go down).

·         Covered Put

·         Married Put

·         Reverse Collar

·         Bull Put Spread

·         Calendar Call Spread

·         Calendar Put Spread

Neutral Option Strategies

Neutral option strategies are ideal for investors who are neutral toward an option (expect the price of an underlying asset to remain relatively the same).

·         Long Call Butterfly Spread

·         Long Call Condor Spread

·         Long Iron Butterfly Spread

·         Long Iron Condor Spread

·         Long Put Condor Spread

·         Long Put Butterfly Spread

·         Short Call Butterfly Spread

·         Short Call Condor Spread

·         Short Iron Butterfly Spread

·         Short Iron Condor Spread

·         Short Put Butterfly Spread

·         Short Put Condor Spread


To view a strategy screener

1.       Select a strategy screener from the navigation list.

2.       Depending on screener you select, you will have one or more of the following options:

·         Click the chart icon () to open the Option Strategy Analyzer page.

·         Click the calculator icon () to open the Vertical Spread Calculator.

3.       Optionally, you can enter information to filter the results, click the Download button to view the screener, or click the Share This button to share the results with your friends on a variety of social networks, including Twitter, Digg, StumbleUpon, Facebook, LinkedIn, and email.

 

 

 


Chapter 7:
Custom Strategy Screeners

Custom screeners are for those users who need more control on the screening. You may choose from a variety of filters to suit your needs. You can also customize your screened results by choosing appropriate columns to display in the results chart.

You can add an APPL filter that consists of an expression. To learn more about creating APPL expressions, go to the APPL 1.0 tab in Avasaram.

To add a new custom screener

1.       Log into Avasaram.

2.       Select the Custom Strategy Screener link in the navigation panel.

3.       Click the Add New Screener button. The Screener Details window opens.

4.       Enter a Screener Name.

5.       Select a strategy type from the drop-down list.

6.       Click the Next button. An expanded Screener Details window opens.

7.       Select a filter from the drop-down list and click the Add Filter button. A window opens for you to specify details about the filter.

8.       Click the Save button. The expanded Screener Details window opens again.

9.       Click the Add APPL Filter button to add an APPL filter expression. (See “Chapter 10: APPL” for details about creating AAPL filter expressions.)

10.   Optionally, click the Validate button to confirm the expression is formatted correctly.

11.   Save the expression. The system returns to the Screener Details window.

12.   In the Display Column Configuration section,

·         To add a single column, select the column from the Available Values list and click the add arrow (>) button to move your selection to the Selected Values list.

·         To move all columns in the Available Values list to the Selected Values list, click the double right arrow button (>>).

·         You can also use the remove (<) and remove all (<<) buttons to remove one or all of the Selected Values.

·         Click the Add APPL Column button to create a custom column. In the Advanced APPL Display Column page that is displayed, enter a title, description, and APPL expression. You can click the Validate and Preview button to confirm your expression and view the structure of your custom column, as shown in the following image:

Click the Save button. The system returns to the Screener Details page. At any time you can select one of your custom APPL columns from the My APPL Columns drop-down list and click the Edit APPL Column button to make changes.

13.   In the Download Configuration section, click the Configure button to configure the columns that will be displayed in the downloaded CSV file. In the Download Column Selection page that is displayed, select the columns for the file:

·         To add a single column, select the column from the Available Values list and click the add arrow (>) button to move your selection to the Selected Values list.

·         To move all columns in the Available Values list to the Selected Values list, click the double right arrow button (>>).

·         Use the remove (<) and remove all (<<) buttons to remove one or all of the Selected Values.

Click the Update Download Configuration button. The system returns to the Screener Details page. Your selected columns are shown. You can click the Reset button at any time to revert to the default configuration.

14.   You can click the Run Screener button to test your screener.

15.   Click the Save Screener button.

To view a screener

1.       Select the Custom Strategy Screener link in the navigation list.

2.       In the list that is displayed, select the Screen link for the screener you want to view. Your screener is displayed in a new window. A sample is shown below.

3.       In addition to view the stocks that match your filter, you can also click the Share This button to share the results with your friends on a variety of social networks, including Twitter, Digg, StumbleUpon, Facebook, LinkedIn, and email.

Filters

Filters are used in the custom screeners to narrow down the scanned the results.

Data Source Filter

Use this filter to determine the source of your custom scan. You have the option to scan from a list from within the Avasaram or from a list of your own list of stock tickers. If you choose the latter option, enter a maximum of five ticker symbols (separated by commas). If you select the system list and also enter your own tickers, the system will scan the system list for any of your user entered tickers.

To use the Data Source Filter

1.       Select the source option:

·         Select the Use System List from the drop-down list to use the system-generated list of stock tickers, or

·         Select the Use My List option to specify your own list of stock tickers.

2.       Optionally, specify one or more stock ticker symbols that you want to use as a filter.

3.       Click the Save button. The system returns to the Screener Details screen. The Data Source Filter now shows in the list of filters.

Max Return Percentage Filter

This filter enables you to scan for those strategies whose maximum return falls in a range that you specify.

To use the Max Return Percentage Filter

1.       Select a comparison operation from the drop-down list (Greater Than, Less Than, or Between).

2.       In the space provided, add a percentage (1-100).

3.       Click the save button. The system returns to the Screener Details window. The Max Return Percentage Filter now displays in the list of filters.


Moneyness Filter

This filter lets you adjust moneyness of strategy legs. You can specify how much each leg is In the Money (ITM) or Out of Money (OTM). Moneyness refers to the relationship between the current or future price of a stock and the strike price of a related option.

To use the Moneyness Filter

1.       For the Long Leg, select a comparison operation from the drop-down list (Greater Than or Less Than).

2.       In the space provided, enter a percentage (1.0 to 100).

3.       Select Out of Money (OTM) or In the Money (ITM) from the drop-down list.

4.       For the Short Leg, select a comparison operation from the drop-down list (Greater Than or Less Than).

5.       In the space provided, enter a percentage (1.0 to 100).

6.       Select Out of Money (OTM) or In the Money (ITM) from the drop-down list.

7.       Click the Save button. The system returns to the Screener Details screen. The Moneyness Filter now displays in the list of filters.

Option Expiry Filter

This filter is used to control the expiration (maturity date) of the option leg. The options or the current month plus 2, 3, 4, 5, or 6 months.


To use the Option Expiry Filter

1.       Select an expiration date filter from the drop-down list.

2.       Click the save button.

3.       The system returns to the Screener Details screen. The Option Expiry Filter now displays in the list of filters.

Open Interest Filter

You can use this filter to scan for strategies with options that have an open interest that falls within the selected range.

To use the Open Interest Filter

1.       Select a comparison operation (Greater Than, Less Than, or Between) from the drop-down list.

2.       In the space provided, enter a percentage (1.0 to 100).

3.       Click the save button.

4.       The system returns to the Screener Details screen. The Open Interest Filter now displays in the list of filters.

Option Volume Filter

This filter allows you to scan for those strategies that have options with volume that falls within the specified range.


To use the Option Volume Filter

1.       Select a comparison operation (Greater Than, Less Than, or Between) from the drop-down list.

2.       Click the save button.

3.       The system returns to the Screener Details screen. The Option Volume Filter now displays in the list of filters.

 

Probability Filter

This filter lets you scan for those strategies whose probability of achieving maximum profit falls within the specified range.

To use the Probability Filter

1.       Select a comparison operation (Maximum Return or Any Return).

2.       Select an option (Greater Than, Less Than, or Between) from the drop-down list.

3.       Click the save button.

4.       The system returns to the Screener Details screen. The Probability Filter now displays in the list of filters.

Put Call Ratio Filter

Put Call Ratio is the ratio of the trading volume of put options to call options. This filter is used to determine investor sentiments. For this filter you can pick those stocks that fall within the selected range.

To use the Put Call Ratio Filter

1.       Select a comparison operation (Greater Than, Less Than, or Between) from the drop-down list.

2.       Enter a beginning and ending ratio in the spaces provided

3.       Click the save button.

4.       The system returns to the Screener Details screen. The Put Call Ratio Filter now displays in the list of filters.

Stock Price Filter

This filter allows you to scan for those strategies whose stock price falls within a specified range.

To use the Stock Price Filter

1.       Select a comparison operation (Greater Than, Less Than, or Between) from the drop-down list.

2.       In the space provided, enter a percentage (1.0 to 100).

3.       Click the save button. The system returns to the Screener Details screen. The Stock Price Filter now displays in the list of filters.

Stock Volume Filter

With this filter you scan for those strategies whose stock volume falls within the specified range.


To use the Stock Volume Filter

1.       Select a comparison operation (Greater Than, Less Than, or Between) from the drop-down list.

2.       In the space provided, enter a percentage (1.0 to 100).

3.       Click the save button.

4.       The system returns to the Screener Details screen. The Stock Volume Filter now displays in the list of filters.


Chapter 8:
Calculators

Avasaram includes three calculators that you can use the following stock option calculators to view the results of a specific options trading strategy:                                                                                                                                                             

·         Option Pricing Calculator

·         Vertical Spread Calculator

·         Covered Call/Put Calculator

Option Pricing Calculator

 The Option Pricing calculator calculates option prices and option Greeks (Delta, Gamma, Theta, Vega, and Rho) based on the Black Scholes model. You can access detailed descriptions of Option Greeks by clicking the Tutorials tab and selecting Option Greeks from the navigation list.

 


The results of the calculation are the percentage change of the following Option Greeks:

·         Delta – Sensitivity of the option price when there are insignificant changes to its price.

·         Gamma – Gamma is the rate of change of delta with respect to the underlying asset price.

·         Theta – Sensitivity of the fair value of the to changes in time to expiration (amount as the amount the option price would decay in one day)

·         Vega – Sensitivity of the option price when volatility increases by 1%.

·         Rho –  Sensitivity of the fair value of the option to insignificant changes in the interest rate (the amount the option price would change with a 1% point move in the interest rate)

To use the Options Pricing Calculator

1.       Select an Option Type from the drop-down list.

2.       Enter the Current Stock Price.

3.       Enter the Strike Price

4.       Enter the Interest Rate (%).

5.       Enter the Volatility (%)

6.       Enter the Time to Expiry (Days).

7.       Click the Calculate button. The results for the Option Greeks are displayed at the bottom of the windows.


Vertical Spread Calculator

This calculator allows you to calculate returns and break-evens for a variety of vertical spread option strategies.

 

To use the Options Pricing Calculator

1.       Select an Option Type from the drop-down list.

2.       Enter the Current Stock Price.

3.       Enter the Strike Price

4.       Enter the Interest Rate (%).

5.       Enter the Volatility (%)

6.       Enter the Time to Expiry (Days).

7.       Click the Calculate button. The results for the Option Greeks are displayed at the bottom of the windows.


Covered Call/Put Calculator

Use this calculator to calculate the following for covered call and covered put strategies:

 

To use the Covered Call/Put Calculator

1.       Enter a Ticker. For example. "CAT".

2.       Enter the Trade Date. This is the date on which the covered call is initiated. The default is the current date.

3.       Select the Calculator Type:

·         Select Covered Call to calculate covered call details.

·         Select Covered Put to calculate covered put details.

4.       Select the option that you will be selling by clicking the Select Main Leg button. A window opens with a list of options from which you can make a selection. Click the Add selected button to close the window and update the screen with data from your selection.

5.       Click the Select Roll Over Leg button to select an option from the list.

6.       Click the Calculate Returns button to calculate your returns.


Chapter 9:
User Registration

To use the Avasaram investment tool, you simply need to open a browser window and enter the following URL: http://www.avasaram.com

You can access the Option Strategy Analyzer, calculators, and User Guide without logging into the tool.

If you are interested in saving your stock analysis, you can create a user account to access the following Avasaram features:

·         Technical Analysis

·         Pattern Screener

·         Strategy Screener

·         Custom Strategy Screener

To register an Avasaram user account

1.       Select the Login tab. The Login page opens:

2.       Click the Create UserId link. The User Registration page opens:

3.       Enter the requested information in the spaces provided. Note: All fields are required.

4.       Select the Email me website updates checkbox if you want to receive emails about updates to Avasaram.

5.       Click the Register button.

To log in to Avasaram

1.       Select the Login tab. The Login page opens:

2.       Enter your User ID and Password.

3.       Select your Location from the drop-down list.

4.       Click the Login button.

To exit Avasaram

To exit Avasaram, select the Logout tab.


Chapter 10:
APPL

 

APPL (Avasaram Platform Programming Language) is a powerful language used to extend the built in functionalities of the Avasaram platform. It could be used to create advanced filters and advanced display columns. Language syntax for APPL is very similar to the popular language JAVA.

To view details about how to use AAPL in your stock options trading analysis, go to the APPL 1.0 tab in Avasaram.

 

 

 

 

 

 

 


Chapter 11:
Web Services

 

Avasaram RESTful Web Services enables third-party applications to interface with the Avasaram platform. The APIs provide access to various screeners, analyzers, and calculators.

The Avasaram RESTFul Web Services include the following services :

·         Login Service

·         Screener Service ( 28 Strategies )

·         Custom Screener Service ( User Created Strategies )

·         Option Calculator Service ( Option pricing and greeks )

·         Vertical Spread Calculator Service ( Bull/Bear Spreads )

·         Analyzer Service

To download a PDF version of the Avasaram Web Service documentation and output XML samples, go to the Webservices tab in Avasaram.


Chapter 12:
FAQ

This chapter contains the most common questions asked about Avasaram.

Contact Information

Where do I send my feedback?
Send your feedback to support@avasaram.com, your comments are always welcome. We love to hear from our users.

Data

How often do you update the data for the screens?
Please check out our data updation schedule page.

Is the data real time?
No. Currently, data is delayed.

General

I want to learn more about options and option strategies, where can I find information?
You may use our tutorial section. There are tons of information available on the internet.

How do I install the mobile version of Avasaram on iPhone?
Refer to iphone-installation-instructions

What are gadgets?
Gadgets are little applications that you add to your iGoogle home page or your website. Go to the gadgets tab to obtain the code to embed in your website.

Screeners

What is the difference between Custom Screeners and Standard Screeners?
Standard Screeners are the built in screeners which is configured by our analysts. Custom screeners are configured by the users themselves to suit their needs.

Is there a limit on the number of custom screeners you can create?
No. Currently there is no limit.



I do not see some options on the screeners which I expected to be there.
If you are using the built in screeners our filters could be filtering them out. Try to screen by creating a custom screener.

How do I download the screener results to my computer.
Use the download button on top of the screener data page to download to your computer. Data is in comma separated format and can be easily viewed using Excel.

How do I screen for Indian Option Strategies?
There are two ways: (1) Change the location dropdown to "India" on the top of the screen and (2)
Directly access the website through http://india.avasaram.com

What does the Quick Filter button do?
This option allows you to refine screened results.

 


Chapter 13:
Additional Information

This chapter includes additional information that can enhance your experience with Avasaram.

Direct Access URLs

The Avasaram platform includes data for stocks traded on the American, Canadian, and Indian stock exchanges. You can access these exchanges directly using the following URLs:

American Stock Exchanges

http://usa.avasaram.com

Canadian Stock Exchanges
http://canada.avasaram.com

Indian Stock Exchanges

http://india.avasaram.com

 

Data Update Schedule

The following schedules show the times that data on the Avasaram platform is updated.

USA

Start Time            

End Time

10:25 AM EST

10:45 AM EST

12:25 PM EST

12:45 PM EST

4:25 PM EST

4:45 PM EST

 

India

Start Time     

End Time

10:00 AM IST

10:20 AM IST

12:30 PM IST

12:50 PM IST

4:00 PM IST

4:20 PM IST

 

Installing Avasaram on your iPhone

If you do a lot of traveling and own an iPhone, you may want to consider installing Avasaram on your iPhone for convenience.

1.       Go to the home screen and click the icon to open the Safari browser.


2.       Enter the following URL: www.avasaram.com/mobile


3.       At the Avasaram home page, select the plus sign (+) button located at the bottom of the screen.


4.       Select Add to Home Screen from the list of options.


5.       Use the default name or specify a different name. This is the name that will be displayed on your iPhone home screen.


6.       The installation is complete. You can now go directly to the Avasaram website by clicking the icon on the home screen.

 

Gadgets

The Gadgets tab in Avasaram includes several tools that you can add to your iGoogle page or website. The following is a list of the gadgets that are currently available. Follow the instructions for each gadget to add them.

·         Google gadget for Top performing covered calls from American Stock Exchanges

·         Google gadget for calculating returns & breaks even from covered calls and puts

·         Google gadget for calculating returns & breaks even from covered calls and puts

·         Google gadget for top performing covered calls from Indian Stock Exchanges

·         Google gadget for top performing Calendar Spreads from American Stock Exchanges

·         Calculate Option Prices Using Black Schole's Model

 

Tutorials

This user guide provides information you need to use the tools available to you in Avasaram. If you are new to options trading, or you just need detailed information to understand how a specific option strategy works, the Tutorials tab is a great secondary reference. The information in this tab includes basics, such as a definition of common terms and detailed descriptions of Option Greeks and option strategies. You can also obtain some valuable tips by clicking the Option Trading Tips link.

 

 

 

                                   


Index

 


A

APPL · 35

B

bearish option strategies · 17

bullish option strategies · 17

C

calculators · 29

candlestick chart · 12

candlestick patterns · 14

Covered Call/Put Calculator · 32

custom strategy screeners · 19

D

Data Source Filter · 22

data update schedule · 39

E

exiting Avasaram · 34

F

features · 4

G

gadgets · 45

I

iPhone installation · 40

L

Line chart · 13

logging into Avasaram · 34

M

Max Return Percentage Filter · 23

Moneyness Filter · 24

N

neutral option strategies · 17

O

OHLC chart · 13

Open Interest Filter · 25

Option Expiry Filter · 24

Option Pricing Calculator · 29

Option Volume Filter · 25

P

pattern screener · 15

Probability Filter · 26

Put Call Ratio Filter · 26

S

stock exchanges, URLs · 39

stock Price Filter · 27

Stock Volume Filter · 27

strategy analyzer · 6

strategy screeners · 16

T

technical analysis chart · 11

technical indicators · 14

U

user registration · 33

V

Vertical Spread Calculator · 31

W

web  services · 36