Put Option Analyzer
Analyzer Engine is your contract-level validation stage. Use it to decide if one exact contract is truly acceptable before execution.
What you will learn in 30 seconds
- How to read Analyzer blocks in the right order.
- How to turn signals into a concrete approve/reject decision.
- How to avoid overfitting one metric and missing warning context.
1. Build clean input first
Analyzer quality depends on input quality.
- Start from a Screener-shortlisted candidate whenever possible.
- Keep cycle and DTE context consistent while comparing contracts.
- Avoid analyzing random one-off strikes without framework context.
2. Read blocks in fixed sequence
A fixed order reduces interpretation mistakes.
- Read contract context first, then signal profile, then warnings.
- Do not approve based on one strong value while other blocks disagree.
- Use one decision checklist across all candidates.
3. Convert analysis into portfolio-ready decision
Analyzer approval is necessary but not sufficient.
- Send only approved contracts to Portfolio Planner for concentration check.
- Reject contracts with unresolved warning or weak liquidity context.
- Keep an audit trail of why one candidate was preferred over alternatives.
How to read Analyzer blocks
Use each block to answer one specific risk question.
| Analyzer Block | What to Read | Risk Question | Action |
|---|---|---|---|
| Contract Overview | Ticker, expiration, strike, key context values | Is this the contract I actually intend to evaluate? | Confirm setup identity before any deeper interpretation. |
| Signal Overview | Delta, BE Distance, liquidity context | Is the risk/reward profile aligned with my framework? | Continue only if signals are balanced for your profile. |
| Warning Details | Warning reasons and severity context | Do warnings materially weaken execution or risk quality? | Reject or down-prioritize unresolved warning-heavy candidates. |
| Decision Hand-off | Final summary vs alternatives | Is this better than the next-best candidate? | Move selected contract to Portfolio Planner for final gate. |
Practical Analyzer examples
Setup: Contract shows acceptable delta context, solid BE Distance, and no critical warnings.
Interpretation: Analyzer stage supports approval for portfolio-level check.
Next Step: Move to Portfolio Planner and validate concentration impact.
Setup: Premium looks attractive, but warnings and liquidity context are weak.
Interpretation: Single-metric strength does not compensate for structural quality risk.
Next Step: Reject or compare with next-best candidate that has cleaner warning profile.
Common Analyzer mistakes
- Using Analyzer only to confirm a decision already made in advance.
- Skipping warning details because top-line metrics look good.
- Comparing contracts with different cycles and DTE context.
- Approving analyzer output without final portfolio-level gate.
Recommended Analyzer sequence
- Step 1Confirm contract identity and context inputs.
- Step 2Read signal profile with delta + BE + liquidity together.
- Step 3Evaluate warning details and severity context.
- Step 4Approve/reject and send only approved setups to Portfolio Planner.