Idea Hub is an options idea exploration center that provides preset screens generated by trading idea search logic. For convenience, each individual result is integrated with the Trade and Probability Calculator and All In One Trade Tool which are accessible by hovering over the tile. Data is refreshed every 15 minutes. The Idea Hub can be accessed through the Launch Tools drawer within StreetSmart Edge®.
The Idea Hub Home Page provides an overview of all the Idea Hub screens:
Big Movers
Earnings
Premium Harvesting
Covered Calls
Each Idea Hub Screen is represented by a pod with the following:
Name of the Idea Hub Screen.
Number of screen ideas generated.
Number of ideas broken down by Bullish, Neutral, and Bearish.
Description of each screen.
When clicking a specific Idea Hub Screen, a new page is loaded with specific ideas. The View Type can be set to see the screen ideas in Gallery or List view.
What’s Trending is an Idea Hub grouping which screens for optionable ideas based on changes in Open Interest, Volume or Implied Volatility. What’s Trending has the following screens:
Big Movers: Uses predefined screens to generate optionable ideas where a company's stock or options have moved significantly, as measured by open interest in options, volume traded of stock or options, or implied volatility.
The Big Movers Screen also provides additional variables which allow you to further customize your results, limited to a maximum of 45 ideas. Further customizations include:
Large Daily Change in Open Interest, while filtering for:
Average stocks volume greater than 500,000 shares
Open Interest greater than 1,000 shares
Stock Price greater than $5
Increase in Stock Volume, while filtering for:
Average daily stock volume greater than 100,000 shares
Stock Price which is greater than $5
Increase in Implied Volatility, while filtering for:
Average daily stock volume greater than 100,000 shares
Stock Price which is greater than $5
Large Option Volume Change (Equities Only or, Indices, & ETFs), while filtering for:
Money Flows, while filtering for:
High Put/Call Ratio, while filtering for:
Average Daily Option Volume greater than 5,000 contracts
Put/Call Ratio greater than 5
Low Put/Call Ratio, while filtering for:
Large Increase/Decrease in Put/Call Ratio, while filtering for:
High IV/HV (Implied/Historical Volatility) Ratio, while filtering for:
IV/HV Ratio greater than or equal to 2
Average Daily Option Volume greater than 2,000 contracts
Low IV/HV (Implied/Historical Volatility) Ratio, while filtering for:
Best/Worst Performing Stocks, while filtering for:
Average Daily Option Volume greater than 5,000 contracts
Average Daily Underlying Volume greater than 1 million shares
Underlying Price which is greater than $10
Change the Trade Type to see the opposite of the screen ideas generated.
Setting Trade Type to Trade displays ideas corresponding to the chosen strategy: (Bullish, Bearish, Neutral)
Setting the Trade Type to Fade displays ideas based on the opposing strategy (User chose Bullish, tool displays Bearish).
Earnings: Uses the Earnings Calendar to find the top 15 optionable stocks by largest average daily volume with earnings in the next 7 calendar days.
Income is an Idea Hub Screen grouping in which screens related to generating additional income are located. The Income is broken into the following groups:
Premium Harvesting: Provides a variety of market neutral, slightly bearish, and slightly bullish credit spread ideas using a combination of iron condor strategies and credit call and put spread strategies. Ideas consist of broad-based indices, popular ETFs, and high volume stocks using strike prices that are generally one standard deviation or more (using the 30 day At-The-Money IV Average) from the current underlying price within the expiration timeframe within a minimum of a $0.25 credit per spread.
The following methodology is used to identify volatility across stock indices, ETFs, and individual stocks
Implied volatility is measured by using a weighted average of the At-The-Money (ATM) call and put options for each underlying security
Ideas are generally one standard deviation or more (using the 30 day At-The-Money IV Average) from the current underlying price
Only ideas with a minimum credit of $0.25 are displayed
In addition, we filter the underlying symbols for the following criteria:
Minimum average daily option volume of 5,000 contracts
Minimum average daily stock volume of 1,000,000 shares
Underlying price greater than or equal to $10
The ideas displayed are then sorted based on the highest return on risk percentage (calculated as the credit received divided by the maximum risk of the trade)
In addition to the above criteria, certain leveraged and inverse ETF/ETN products are filtered from display, including VXX, UVXY, and SVXY.
The results can be further refined by selecting one of the following filters:
Covered Calls**: Looks for optionable ideas using the following criteria:
Stock Price between $10 and $200
Average Daily Stock Volume between 1,000,000 and 100,000,000 shares
Implied Volatility between 10 and 60
Open Interest between 250 and 2,000,000
Static Return % between 2% and 8%
Covered Call Return % (if assigned) between 8% and 30%
The Covered Calls Screen can also be sorted by:
Static Return
Break Even
Covered Call Return (if assigned)
| Idea Hub Definitions | |
| Implied Volatility |
The amount of movement expected in the stock (either higher or lower) given the current price of the options. |
| Open Interest | The number of contracts, either long or short, traded on particular options that have not been offset by a closing transaction. A closing transaction lowers open interest while an opening transaction increases open interest. |
| Static Return | The return an investor would make on a particular position if the underlying were unchanged in price at the expiration of the options in the position. |
| Break Even | The stock price (or prices) at which an option position will neither make nor lose money. |
| Covered Call Return | A combination of the premium received from selling the call + the appreciation that arises from the difference between the strike price and the purchase price of the stock. |
**Covered calls provide downside protection only to the extent of the premium received and limit upside potential to the strike price plus premium received.
Options carry a high level of risk and are not suitable for all investors. Certain requirements must be met to trade options through Schwab. Multiple leg options strategies will involve multiple commissions. Please read the options disclosure document titled "Characteristics and Risks of Standardized Options." Supporting documentation for any claims or statistical information is available upon request.
NBBO (National Best Bid/Offer) Spread Quote reflects the best quotes printed from participating exchanges on each leg of the spread combined. For a long leg, the NBBO single leg “ask” quote is used, while short leg quotes use the NBBO “bid” quote to combine for a synthetic NBBO combination trade quote. Please note that there are no spread markets in securities that are subject to benchmarks such as “time and sales” or “NBBO” and therefore the “market” cannot be “held” to a price.