THE OPTIONSGEEK FRAMEWORK
What Is the New Options Chain?
The New Options Chain is patented OptionsGeek technology developed by Felix Frey to help directional investors answer one of the hardest questions in options trading: Given my stock idea, which option should I buy and why?
Instead of starting with Greeks, implied volatility, and dozens of option statistics, the New Options Chain starts with the investor’s Target Stock Price, timeframe, and confidence. It then evaluates the options against that view and identifies the one strike that best fits it, while showing the Edge, risk-reward, potential payoff, and other information behind the result.
The Problem Is Bigger Than the Options Chain
Most investors assume they struggle with the options chain because they have not learned enough.
So they learn more.
Greeks. Implied volatility. Black-Scholes. Spreads. Probability. Strategy selection.
Someone can spend dozens or even hundreds of hours studying options and still arrive at the same basic question:
Given my stock idea, which option should I buy and why?
The problem is not simply that the traditional options chain contains too much information.
The problem is that options education never gave directional investors a clear process for using that information to answer the question.
Traditional options chains provide enormous amounts of data: premiums, Delta, Gamma, Theta, Vega, implied volatility, volume, open interest, and more.
STANDARD OPTION CHAIN - CONFUSING WITH NO CLEAR PROCESS ON HOW TO CHOOSE
But all that information still does not provide a clear process for determining:
Given my Target Stock Price, timeframe, and confidence, which strike offers the most attractive risk-reward?
That is the problem I set out to solve.
A Different Way to Evaluate the Options Chain
The New Options Chain starts with three inputs from the investor’s stock view and uses them to evaluate the available strikes.
USER ENTERS →
Target Stock Price
Timeframe
Confidence
One Stock View. One Best-Fit Strike.
The New Options Chain does not simply present a list of strikes and leave the investor with another decision to make.
It identifies the one strike that best fits the investor’s stated view.
The result includes the selected strike, its Edge, potential payoff, and other information used to evaluate the opportunity.
STRIKE SELECTOR
It also provides commentary on the selected strike, helping the investor understand why that strike fits the view and what the result is telling them.
Best fit does not automatically mean buy. The New Options Chain also provides guidance on whether the available Edge is attractive enough to consider the trade.
The goal is to produce an answer and help explain why.
STRIKE SELECTOR
Strike Selector vs. New Options Chain
The Strike Selector is the simplified experience.
It uses the same framework to help investors identify the one strike that best fits their view without requiring them to analyze the entire chain.
The New Options Chain is the full interactive engine underneath.
It lets investors see how RR$, OMS, Edge, Black-Scholes probability, potential payoff, and the different strikes compare and change as the inputs change.
Strike Selector = simplified answer.
New Options Chain = full engine behind the answer.
The New Options Chain Is Interactive
The New Options Chain is not a static table.
Change the Target Stock Price, timeframe, or confidence, and the analysis changes with it.
Different strikes can become more or less attractive. Edge, RR$, OMS, potential payoff, and the best-fit strike can all change as the investor changes the assumptions behind the stock idea.
This allows investors to see something a traditional options chain does not make clear:
How changes in their stock view change the opportunity across the options chain.
Grounded in Established Mathematical and Investing Principles
The New Options Chain does not abandon traditional option mathematics.
It includes N(d2), an output from the Black-Scholes framework commonly interpreted as the risk-neutral probability of an option finishing in the money.
This provides a direct connection between the New Options Chain and the mathematical foundation underlying traditional option pricing.
The difference is not that the mathematics have been discarded.
The difference is how the information is organized and applied to the directional decision.
The New Options Chain combines established option-pricing mathematics, probability-game principles, and value-investing principles with the investor’s own stock view and the OptionsGeek risk-reward framework.
OPTIONSGEEK RISK-REWARD FRAMEWORK
Investor's Own Stock View
↓
New Options Chain
OPTION-PRICING MATHEMATICS
Black-Scholes Formula
PROBABILITY-GAME PRINCIPLES
Mathematical Edge
VALUE-INVESTING PRINCIPLES
Margin of Safety
The underlying principles are well established. What is new is how they are brought together to answer the directional investor’s question: Which option should I buy and why?
Focus on Where the Leverage Is
The New Options Chain intentionally fades many strikes into the background.
When top hedge fund managers use options for directional leverage, they are often looking for asymmetric payoff. That tends to shift the focus toward out-of-the-money strikes when the stock idea provides enough Edge to justify the additional risk.
The New Options Chain therefore highlights the area of the chain hedge fund managers often focus on when using options for directional leverage, while keeping the other strikes visible for context.
The goal is not to hide information. It is to help investors focus on the strikes most relevant to the decision they are trying to make.
FAQs About the New Options Chain
Is the New Options Chain the same as a traditional options chain?
No. A traditional options chain primarily displays market information about each option. The New Options Chain incorporates the investor’s stock view and evaluates the available strikes relative to that view.
Does the New Options Chain choose one strike?
Yes. Based on the investor’s Target Stock Price, timeframe, confidence, and the resulting risk-reward analysis, the New Options Chain identifies the one strike that best fits the stated view.
Why do the results change when I change my inputs?
Because the attractiveness of an option depends on the investor’s assumptions. Change the Target Stock Price, timeframe, or confidence and the relative attractiveness of different strikes can change as well.
What is the difference between the Strike Selector and the New Options Chain?
The Strike Selector provides the simplified user experience and best-fit strike. The New Options Chain lets investors see the full interactive engine underneath, including how the different strikes and calculations compare and change.
Is the New Options Chain patented?
Yes. The New Options Chain is patented technology developed by Felix Frey and OptionsGeek.
The Next Question
The New Options Chain makes it possible to compare different options by the amount of Edge they offer and identify the strike that best fits the investor’s view.
But that raises another important question:
How much Edge is enough?
That depends on how Edge should be interpreted, how much cushion is appropriate, and how it should be balanced against the potential payoff.
The full methodology behind how Edge is calculated and applied is taught inside the OptionsGeek Masterclass.