Methodology.
The Options Research Center uses its own methodology based on the Option Deviation Index concept (ODI). The ODI analysis was published for the first time in the Futures magazine in 2005. Since then the concept has proven to be very effective in various market conditions due its simplicity and consistency. This method does not rely on any market indicators nor oscillators but instead it measures market movements using statistical methods. The Option Institute has also developed a number of adjustment strategies which in addition to its core findings brings more value to maximize performance.
While we use elements of technical and fundamental analysis as supportive factors our primary goal is scientific approach to the markets. We believe that combining market patterns of high probability and option strategies tailored for specific market conditions is the best method to achieve profitable results. We use our original The ODI concept method to analyze markets and apply our selective option structures to the results of this process.
Our methods have many advantages over traditional technical and fundamental analysis. We use restrictive requirements for markets being analyzed in this process. The ODI analysis distinguish between market not producing patterns with sufficient rate of success and conditions in which our option models may be engineered. This means that regardless of what technical analysis show once our criteria are not met, no orders are generated.
All technical analysis signals have its ups and downs, which means there are periods in which any particular technical tool becomes useless. Our approach seeks always for new patterns, which can be identified due to the ODI clear and solid method of measuring statistical movements rather than identifying possible trends. We learned through many years of analysis and trading that markets change more often magnitude of movements, rather than its long term behavioral pattern.
Please read our Legal Disclaimer.