Market Chameleon is a great way to find opportunities to trade stocks and options. There are a lot of tools on the platform that cover the market as a whole and let you dig deep into analysing a trading strategy. The tools in Market Chameleon are especially useful for traders who want to make money when earnings reports come out.
So, will Market Chameleon make you a better trader? In our Market Chameleon review, we’ll look at what this platform has to offer in more detail.
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How much does it cost to use Market Chameleon?
There are five different price levels for Market Chameleon. The Starter tier is free and has a lot of tools for stock traders that might surprise you. You can use a good stock screener, look at gap-and-go stocks, and see if the number of orders for stocks and options is unusual. But Market Chameleon doesn’t have most of its best features.
The Stock Trader plan costs $39 a month and gives you access to all of Market Chameleon’s tools for trading stocks. The biggest difference between the Stock Trader plan and the Starter plan is that with the Stock Trader plan, you can download most of the data.
The Options Trader plan costs $69 per month and gives you access to most of Market Chameleon’s features, including all options strategy screeners. But it doesn’t look at how trading in options shows how prices move around earnings reports.
The monthly cost of the Earnings Trader plan is $79. It adds the ability to compare options activity to changes in earnings, but it doesn’t add options screeners.
The monthly price for the Total Access plan is $99. This is needed if you want to see all of Market Chameleon’s data on options and earnings analysis at the same time.
The Tools and Features of the Market Chameleon
Stock Market Research Market Chameleon gives stock traders a number of useful tools that aren’t necessarily new, but are still very helpful. For example, traders can quickly see the top gainers and losers for the trading session, stocks with unusually high or low trading volume, and stocks that have gapped up or down and kept going in that direction during the trading day.
The platform also lets traders look at market order imbalances, which usually happen when large funds make trades at the end of the day based on closing prices. Free users can see order imbalances for each stock, but the view of order imbalances for the whole market is more useful. This shows how money comes into and goes out of the whole stock market, which gives an idea of how institutional investing firms feel.
When you switch from looking at stock data to looking at options data, Market Chameleon starts to shine more brightly. There are a lot of helpful tools for people who trade options on their own (newer options traders may prefer the simplicity of Motley Fool Options).
The platform has a number of unique tools that can be used to find out how the market is doing and where there might be trading opportunities.
The unique options volume scanner is a key tool. This scan finds stocks whose options are being bought and sold at a faster rate than usual. Market Chameleon will also find possible catalysts, which can help you decide if the activity in the options market is a good chance to trade or just rumours.
Market Chameleon also has an options order flow screener that is more flexible and gives a clear report on how the market feels. You can watch how bullish and bearish activity on the market as a whole changes over time, or you can focus on specific stocks on your watchlist. More screeners automatically show the top stocks that are going up and the top stocks that are going down based on recent options activity.
Screeners for Stock and Options Market Chameleon has both screeners for stocks and screeners for options. The free stock screener has several dozen filter parameters, most of which are based on fundamental metrics and current events like earnings. Most of the technical filters are based on how much the price has changed and how it has changed over time. The screener looks a lot like the FinViz screener, which I still use from time to time. It’s a great way to make watch lists (vs. scanning the market in real-time with a tool like Trade Ideas).
The options screeners can do a lot more. You can use any of 18 different option strategies to build screens. Most aspects of a strategy can be changed, such as the risk and return potential, the difference between strike prices, and when the strategy ends. The results are shown in a table that can be sorted and has important information, such as the historical win rate, potential profit and loss, and edge over historical pricing.
Earnings Market Chameleon is especially useful when it comes to earnings because the platform combines many of its tools to help you figure out how to trade earnings in a way that will make you money.
To start, an analysis page shows stocks that are overvalued or undervalued around earnings by comparing option order activity to historical earnings performance. Notably, the analysis compares the earnings-driven price change implied by options activity to the price change the stock has seen in the past. So, there is a chance to make money when other traders are wrong.
There are also earnings-based stock and options screeners on the platform. The options screener is especially helpful because it backtests more than 30 different option strategies to see how they have done around earnings releases over the past three years. You can change the screen so that it only shows one options strategy, stocks that are due to report earnings on a certain date, or stocks that are on your watchlist.
You can create as many watchlists as you want with Market Chameleon. You can make a watchlist for either stocks or specific options contracts, and Market Chameleon’s screens and analyses can be limited to the items on a watchlist. The platform also lets you set up email alerts based on what’s on your watchlists, which you can customise.
What’s the difference between Market Chameleon and other services?
Market Chameleon isn’t the only place that has stock screeners or analysis of options strategies. But it is pretty unique in that it combines this information with news about earnings releases and has a wide range of tools.
Market Chameleon’s earnings tools are very useful because they let traders compare what the market expects and how prices have changed in the past around earnings releases. The platform also stands out because it has a feature called “earnings-driven options strategy backtesting,” which you won’t find on any other platform.
Market Chameleon also has a lot to offer for all kinds of traders. It has simple, automated filters for trading opportunities like gap-and-go stocks as well as more advanced, highly customizable options screeners. Market Chameleon has a lot of features, which makes the platform worth it even if you want to pay to use some of the tools that aren’t free.
Should you use Market Chameleon?
Market Chameleon is best for traders who buy and sell options and who look for opportunities when earnings reports come out. Any stock trader can use the platform, which comes with tools like a free stock screener. But it is best at using order flows for options to help you find possible trading strategies, especially around corporate earnings. Market Chameleon’s data isn’t always easy to understand, so the platform is usually better for options traders with more experience.