What’s New in Option Alpha: March 2025

Filter by Top Strategies in Trade Ideas

Filter Trade Ideas to only include positions from Top Strategies in OA Labs. When this option is selected only strategies that other traders have had profitable results live trading are included in the results.

This option is also available for "Open Trade Idea" actions when auto trading under Position Criteria:

Normalized Volatility Risk Premium (NVRP) added to the platform

tastytrade recently discussed a new metric, NVRP, that compares realized historical volatility (HV) vs implied volatility (IV) to find an edge when selling option premium. The research suggests that high NVRP signals an opportunity to sell premium, leveraging the market's tendency to overestimate future volatility.

That research aligns with ours and is one of the foundational concepts behind Trade Ideas. Trade Ideas uses HV to calculate probabilities and uses those probabilities to calculate an expected value (EV) for trades based on current options prices. This discovers opportunities where option premiums (based on IV) are inflated in comparison with HV.

NVRP provides a separate metric to identify opportunities where the discrepancy between IV and HV is greatest.

We agree this is a valuable metric and decided to include support for it in several places within the Option Alpha platform:

These 2 options use the IV of the underlying symbol to calculate NVRP:

NVRP added to underlying symbol decision

The value is a decimal here, e.g. 25% is .25

Added NVRP column to Screener

To enable the column click on the [⚙] button on the right side of the grid header.

These options use the IV of the position to calculate NVRP:‍

Added NVRP column and filter to Trade Ideas

NVRP filter added to Open Trade Idea actions in bot automations

Here's the tastytrade video with more info about NVRP.

Here's another video where Dr Jim jubilantly shares his enthusiasm for this concept (time: 2:14:41).

Select position legs by Expected Move

Use the Expected Move priced into options for a specific date to select the legs for positions in bots and the 0DTE backtester. The Expected Move is calculated based on this calculation published by tastytrade.

New decision recipes for checking Expected Move

Hindsight Report ‍

This unique report available under Positions / Analyze gives you the ability to look back and see how trading results would have differed if you held positions until expiration.

New decision recipes to make it easier to check if bot has never opened a position

New Trade Ideas symbols

As part of our research for including Top Strategies in Trade Ideas, we identified 57 symbols that traders are having live trading success with that will go live in Trade Ideas starting tomorrow morning, March 18th:

ACN, ADI, ADM, ADP, ADSK, AIG, AMGN, BMY, BSX, CCL, CL, CLX, DD, DHI, EA, EBAY, EIX, EOG, EWJ, EWW, GILD, HON, IBB, IBIT, LEN, LLY, LYFT, MARA, MCHP, MDT, MMM, MRNA, NEE, NOW, NRG, NTAP, OIH, OMC, PGR, PLTR, PSX, ROST, RTX, SO, SPG, STX, TBT, TCOM, TMUS, TSN, ULTA, WDC, WYNN, XLC, XLI, XLV, ZM