What is Options Watchlist

Know how they say that all good traders stay on top of their game by keeping themselves constantly informed? Ever wondered how they do it? Well, they don’t tune into the 9 o’clock news for updates, that’s for sure.

Traders need to know what is happening to their securities and options now. This is where an options watchlist comes in handy. It allows traders to keep track of all important metrics, so they can spot decent trade opportunities as they appear.

A day trading watchlist lets day traders pick profitable trades and maximize their return through informed trade decisions based on factual data. No speculation, only calculations! That’s how you can throw in your A-game every time without fail.

If you’re wondering how to create a stock watchlist and how it can help you, read on to explore!

Why Having an Options Watchlist is Crucial for Successful Trading

Speculation can only take you so far in the trading game. It’s not like gambling, and if you don’t stop treating it as such, you may end up losing much more than you can win. Trading is all about finding the perfect opportunity to execute buy/sell decisions.

You need to be able to see where the market is moving and how you can capitalize on this trend shift. If you figure out how to create stock watchlist, you’ll be able to monitor all the important metrics for your favorite stocks and securities.

This way, when a trade opportunity presents itself, you’ll be able to execute it without delay. Now, let’s move on to how to make a watchlist for day trading.

What Are the Best Indicators for Creating and Managing Your Options Watchlist?

Creating a watchlist is no rocket science, most tools let you select your favorite stocks and options, and create a list in a pinch. A market watchlist of stocks, however, is not merely a random assortment of numbers coming in every day. Instead, you need to be able to see how a given security, stock, or option is performing.

You can do so by using one of the following indicators, best suited for options watchlists:

  • Relative Strength Index (RSI)
  • Bollinger Bands
  • Intraday Momentum Index (IMI)
  • Money Flow Index (MFI)
  • Put-Call Ratio (PCR) Indicator
  • Open Interest (OI)

These indicators will help you derive meaning from your stock watchlist data and make informed trade decisions.

Tips for Organizing Your Options Watchlist

To get the most out of your swing trading watchlist or top stock watchlist, you’ll have to get organized. Again, stock watchlists are not a random assortment of numbers — this data is both meaningful and relevant.

Here’s how you can make sure that you benefit from all key insights:

  • Don’t throw in all options and securities in one watchlist
  • If you have multiple monitors, use them to display multiple watchlists
  • Have a “master” watchlist with all the key metrics for your favorite stocks
  • Other than this watchlist, have a couple more focusing only on specific components
  • Use one screen to display watchlist tickers
  • Don’t throw in more graphs and indicators than you have to
  • Make the data palatable — if it seems confusing, change your approach

Top Metrics: Consider When Evaluating Stocks for Options Watchlist

It’s never a good idea to limit yourself to only a bunch of metrics and ignore the rest. But you can dedicate one monitor screen to all the major metrics for your TradeStation watchlist. This way, you can keep track of all the important changes in your watchlist stock performance. Here are the top metrics for stock evaluation:

  • Last price
  • Net change
  • Percentage change

Adapting Your Options Watchlist to Your Trading Style

Lastly, comes the most important part of the equation: you. You know what metrics and indicators work well for your strategy. Just because most people go for RSI for an options watchlist does not mean that you can’t throw in your preferred indicator too.

And so on.

Now that you know “what is a watchlist for stocks,” feel free to tweak the settings to suit your needs!


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