Options Strategy Research & Backtesting with ORATS

The challenge isn't finding strategies. The challenge is determining which approaches have historically performed best under specific market conditions.

Options traders often spend considerable time analyzing stocks, ETFs and market trends. But before selecting a trade, many also research the strategy itself.

Every options strategy is built around assumptions. A trader may believe that selling premium works best during high volatility, or that covered calls generate better risk-adjusted returns than simply holding stock. But how can these assumptions be evaluated?

Backtesting options strategies has traditionally been a time-consuming process. Traders often needed access to historical data, specialized software and significant technical expertise to research strategy performance. Today, tools such as the ORATS Backtester make this process far more accessible.

When evaluating an options strategy, one of the first questions traders often ask is: Has this approach worked well historically?

Not all covered call approaches are the same. Expiration selection, strike placement and market conditions can all influence historical results.

Options traders often spend significant time searching for strategies, evaluating risk, and wondering how a trade idea might have performed in different market environments. What if much of that research had already been done? 

Many options traders begin with a market opinion. Perhaps you're bullish on Apple (AAPL), expect the stock to remain rangebound, or simply want to generate income from the shares you already own.

Whether selling puts, writing covered calls, or building spreads, strike selection affects nearly every outcome.