Sizzle Index Thinkorswim: A Comprehensive Guide

The Sizzle Index Thinkorswim is a tool that helps traders identify potential breakout stocks by analyzing their price movements and volume. It's a powerful feature that can be found on the Thinkorswim platform.

Thinkorswim is a trading platform owned by TD Ameritrade, a well-established online brokerage firm. The Sizzle Index Thinkorswim is a proprietary tool that's designed to help traders make informed decisions.

The Sizzle Index Thinkorswim calculates a score based on a stock's price movement and volume over a specified period. This score can help traders identify stocks that are likely to break out or continue their upward trend.

To use the Sizzle Index Thinkorswim, traders need to navigate to the Thinkorswim platform and access the Sizzle Index tool.

The Sizzle Index is a powerful tool on the thinkorswim platform that helps traders identify unusual options volume in a given stock. It's calculated as the ratio of the current total volume of put and call options to the arithmetic mean of daily put and call volumes over the last five days.

A Sizzle Index of 5.00 indicates that the current daily options volume is five times that of the daily average options volume, while a Sizzle Index of 0.50 indicates current volume at half of its average. This ratio helps traders quickly gauge the level of activity in a security's options.

You can use the Sizzle Index to scan all optionable stocks and identify those with unusual options volume. To do this, select the Sizzle Index on the Scan > Stock Hacker tab and edit the parameters to find the securities that meet your criteria.

The Sizzle Index can also be added as a column to any watchlist on the thinkorswim desktop platform to gauge the level of activity in a security's options. This allows you to easily track the Sizzle Index for multiple stocks at once.

Here are the key parameters to consider when using the Sizzle Index:

By understanding how the Sizzle Index works and using it effectively, you can gain valuable insights into unusual options volume and make more informed trading decisions.

To use the Sizzle Index in Thinkorswim, start by clicking the Scan tab and selecting Stock Hacker from the sub-tab row. Click the Sizzle Index button to load the Top 10 Sizzling Stocks scan template.

The template comes with three default filters: minimum last price, minimum volume, and minimum market capitalization. You can modify these filters as needed, and the total number of matches will be displayed live on the right.

You can add up to 25 filters in a single scan, including one pattern filter. To remove a filter, click the X button on its right. Once you're happy with your filters, click Scan to view the results in a watchlist-like form.

You can save your scan query for further use by clicking the Show actions menu button and selecting Save scan query. Enter a query name and click Save to save your query.

Using the Sizzle Index in Thinkorswim is a straightforward process. To get started, click the Scan tab and choose Stock Hacker from the sub-tab row. Click the Sizzle Index button on the right of the Stock Hacker header to load the Top 10 Sizzling Stocks scan template.

You can modify the default filters in the template, which include minimum last price, minimum volume, and minimum market capitalization. The total number of matches is displayed live on the right, but keep in mind that the actual scan may return no results if the stock doesn't meet all the specified criteria.

To add more filters to the scan, click the buttons above the filters area. You can use up to 25 filters in a single scan, and only one pattern filter is allowed. To remove a filter, click X on its right.

You can also save your scan query for further use by clicking on the Show actions menu button next to Sizzle Index and selecting Save scan query. Enter the query name and click Save.

Scan results are dynamically updated, so you can easily track changes in the market.

To get the most out of the Sizzle Index, you need to understand the four simple steps to create a personalized sizzle screen.

The first step is to scan the Sizzle Index for unusual options activity. The Stock Hacker screen, located on the Scan tab on the thinkorswim desktop platform, is where you'll find this information.

To increase the number of stocks on the Sizzle Index, select the Show option. This will give you a more comprehensive view of the market.

Next, compare the stocks on the Sizzle Index to identify patterns and trends. This is where your analysis and decision-making skills come into play.

Refine your search by filtering out irrelevant stocks and focusing on those that meet your specific criteria. This step requires patience and attention to detail.

Finally, save your personalized sizzle screen for future reference. This will allow you to track your progress and make adjustments as needed.

To scan optionable stocks, head to the thinkorswim platform's Scan > Stock Hacker tab and select the flame at the top right that represents the Sizzle Index.

This will prefill the Stock Hacker with parameters to find stocks with a per-share price above $5, volume above 100,000 shares, and market cap above $35 million that have unusual options volume.

You can edit these parameters using the sliders or text entry boxes to tailor your scan to your specific needs.

Select Scan to run the scan and view the results.

Analyzing options volume is key to making informed trading decisions. A jump in volume that coincides with a big up or down price move may indicate strength in the direction of the change.

To get a little volume temperature reading, traders can use the Sizzle Index on thinkorswim, an indicator for screening stocks posting unusual options volume compared to their recent draw. This indicator can hint at where the underlying stock might go.

To scan for optionable stocks with unusual options volume, select the flame at the top right on the thinkorswim platform's Scan > Stock Hacker tab. This will prefill the Stock Hacker with parameters to find securities with a per-share price above $5, volume above 100,000 shares, and market cap above $35 million.

Options volume is best viewed in the context of other indicators, and a big up or down price move accompanied by a jump in volume may indicate strength in the direction of the change.

A large percentage price increase accompanied by thin trading volume is less likely to indicate market direction with any staying power and may even indicate a reversal is taking shape.

To get a better sense of options volume, traders can use the Sizzle Index on thinkorswim, which screens stocks posting unusual options volume compared to their recent draw.

The Sizzle Index can help traders identify where the crowd is taking action, whether it's buying or selling in call options or put options.

Traders can scan all optionable stocks on the thinkorswim platform's Scan > Stock Hacker tab, selecting the Sizzle Index to find securities with unusual options volume.

To customize the scan, traders can use the sliders or text entry boxes to edit the parameters, such as per-share price, volume, and market cap.

Saving your options is a breeze, you can set an alert as the sizzle changes.

To save the sizzle, you can either save as a watchlist or set an alert. This way, you'll be notified whenever the sizzle changes, so you can stay on top of your options analysis.

By setting an alert, you'll receive notifications whenever the sizzle changes, keeping you informed and up-to-date.