OptionVue 5 Support - OpScan Basics

OpScan works by "formulas" which query our data base to find trading opportunities. There are 13 built-in formulas developed by OptionVue Systems which can help you find excellent trade opportunities, or modify them to suit your needs. You can also create custom formulas from scratch to quickly find trades based on your personal criteria. These formulas tell the OpScan service exactly what to look for. No more scanning option chains or newspapers. Opscan automatically searches for you!

You use the simple OpScan "language" to create a formula. These formulas will contain expressions like:

LAST > 1.5 AND VOL > 500

Now don't panic here! These formulas are easy to understand and use, even if you aren't an algebra buff. Let's take a quick look at the basic structure of an OpScan formula.

Elements of an OpScan Formula

OpScan formulas are strings of precisely defined Parameters and Operators. Each parameter helps you filter the market to find exactly what you are looking for. You can create OpScan formulas from scratch, or copy and modify existing formulas, your choice. OpScan is extremely flexible and helps you filter out unwanted data quickly and effectively.

To help you better understand how OpScan formulas work, let's break down the composition of the "Exceptional Put/Call Volume Ratio" formula, explaining what each field does step-by-step.

The "Title field" is simply the name you want to give the formula.

The "Pick field" is the heart of the scan as it describes what assets or options you are looking for. Only items that qualify are included in the report - the rest are filtered out leaving you with the best candidates!

This scan looks for assets that meet the following criteria:

PVOL$ / CVOL$ > 2.5 means: The Put Dollar Volume divided by the Call Dollar Volume in this asset is greater than 2.5 today. The put/call ratio is a widely used indicator of investor sentiment. The large amount of dollar volume in puts relative to calls is a bearish signal for this asset.

ATVOL(5) > 200 means: The Average Total Volume over the past five trading days is at least 200 contracts. This statement ensures that the qualified candidates we receive have a fairly liquid market in their options. The operator AND means that only assets that satisfy both statements will be listed on the resulting report.

The Sort field contains a (typically simple) formula that specifies how you want to sort the report results (the order qualified items are listed).

PVOL$ / CVOL$ means: Assets with the largest amount of Put Dollar Volume relative to Call Dollar Volume will be at the top of the results. No manual sorting required!

The Show field tells OpScan what information you want on the report. All reports automatically include the asset name, symbol, and sort value. In this report, the Put Dollar Volume and Call Dollar Volume for each of the qualified assets will also be displayed in the final report.

The "Include" section allows you to select only those types of assets that you would like to consider.

The Max Number of Items field lets you enter the maximum number of qualified candidates that will be listed on the report.

When creating your own or modifying existing formulas, the Test Syntax button gives you an easy way to see if your formula will work. A syntactically correct formula might not find any qualified items. This doesn't mean anything is "wrong" with your formula, just that no items matched your criteria.

Running An OpScan

You can run as many formulas at a time as you want, or run them periodically throughout the day to find new opportunities. To start, simply check the box next to the formula(s) you want to run and click the Connect button.

OptionVue 5 automatically accesses the OpScan server and submits your request. A confirmation dialog box shows the formula was accepted and the progress of your scan. Don't blink! OpScan is remarkably fast. A typical scan takes only a few seconds.

When it is finished, the OpScan server sends its official report(s) to your computer. OptionVue 5 then collects the report(s) and places them in a designated folder where they can be viewed or printed at your discretion.

 To view a typical OpScan report and what it found

Some Important Notes on OpScan

OpScan can be used to scan the market based on data in the underlying or the options. This provides great flexibility in locating good trade opportunities.

Some of the OpScan parameters are Underlying Specific. This means they pertain to individual assets. For example, LASTU (Last price of the underlying asset), VOLU (Volume of the underlying asset) and IV (Implied Volatility) are all underlying specific parameters.

Other OpScan parameters are what we call Option Specific. They pertain to individual options. LAST (Last price of the option), VOL (Volume of the option), and MIV (Market Implied Volatility) are all examples of option specific parameters.

If your Pick formula contains only underlying specific parameters, the result of your scan will be a list of assets. However, if your Pick formula contains at least one option specific parameter, then the result of your scan will be a list of individual options.

If OpScan finds nothing that satisfies your search criteria, the report will show the statement: No Qualified Items Were Found. Try another preferred or proprietary formula and search again - it only takes a few seconds.

If the report lists fewer items than you asked for in the Max Number of Items field, it simply means only that many items qualified under your Pick formula. You can always try new variations and concepts to find what works best for your trading style!

With OpScan, you have complete control. Save time and let OpScan help you become more successful at finding good trading candidates.