How To Value Your Options Portfolio | Driven By Data Episode 49
This week, Matt and Tyler discuss valuing your options portfolio using ORATS' three methods: distribution, smooth, and forecast edge. They walk through Apple and Nvidia trades, using the option scanner to show theoretical values and the role of smooth volatility in pricing.
We also cover how to assess positions with profit attribution, isolate alpha with slope trades, and place a butterfly spread for volatility shifts. The show ends with live data integration updates, giving ORATS users seamless access to real-time trades.
00:00 Intro to ORATS
00:21 Review of Last Week’s Trades
01:04 Apple Trade Analysis
02:14 Nvidia Trade Update
02:45 Portfolio Valuation Overview
03:17 Using the Option Scanner
04:16 Theoretical Values Explained
05:50 Terminal Values and Expected Value
06:13 The Distribution Edge
07:00 Options Chain Analysis
07:48 Smooth Market Volatility
08:34 Extrinsic vs. Intrinsic Value
09:21 Aligning Calls and Puts
10:10 Smoothing Theoretical Prices
10:34 Valuing Options in Practice
11:24 Apple at Expiration
12:05 Smooth Edge Value
12:45 Forecasting Volatility and Implied Vol
14:01 Forecasting Earnings Moves
14:25 Trade Builder Visualization
15:15 Smooth Values in Trading
16:35 Position Evaluation
17:15 Distribution, Forecast, Smooth Edge
18:16 Profit Attribution
19:55 Slope’s Impact on P&L
21:00 Monitoring Slope
22:16 Isolating Alpha
22:32 Slope Trade Setup
24:21 Slope Butterfly Spread
26:07 Final Trade Recap
26:34 Show Recap
27:18 ORATS Live Data Updates
28:16 Conclusion and Thanks
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