Bread Alerts Review – Pros & Cons of This Options Trading Tool

About Bread Alerts

Bread Alerts is an options scanning platform designed to help traders sell options or identify tickers with unusually large options order flow. The platform is relatively easy to use even for first-time options traders, but it doesn’t offer many tools for planning out options trades.

In our Bread Alerts review, we’ll take a closer look at this options platform to help you decide if it’s right for you.

Bread Alerts Pricing Options

Bread Alerts costs $99 per month or $708 per year. You can try out the service for 5 days for $7 or for 14 days for $19.

Bread Alerts Features

Options to Sell Scanner

One of the key features of Bread Alerts is its real-time scanner for options to sell. This scanner surfaces covered calls and cash-secured puts that traders can write and sell for a potential profit.

Writing covered call options may be a suitable strategy when you believe the price of a stock will drop. Writing cash-secured puts may be a suitable strategy when you believe the price of a stock will rise. In either case, your potential profit comes from the premium that another trader pays to buy your options contract.

The Bread Alerts scanner displays the ticker symbol, expiration date, and strike price for each suggested options contract, along with the potential premium and the probability that the option will expire out of the money. You can filter or sort the scanner results by strike price, premium, or probability. The scanner also includes a “Toasty Meter” rating, which combines premium and probability to indicate which options are the most favorable to sell.

If you click on any suggested options contract in the scanner, Bread Alerts will show a more complete list of potential covered call and cash-secured put options to sell for the given ticker and expiration date. This is useful because you can see how the probability of a contract expiring out of the money changes with strike price as well as how the potential return of the trade changes.

Unusual Options Order Flow

Bread Alerts also offers an unusual options order flow scanner, which displays larger than average options trades. Typically, unusual options order flow is due to buying and selling by large financial institutions. Bread Alert displays the options contract details, the trade size, the premium paid, and whether the trade was bullish or bearish. You can filter the scanner by strike price, volume, premium, or open interest.

While this scanner is useful, it’s not as feature-rich as similar options order flow scanners from Optionsonar or Unusual Whales. Those scanners provide more detail about tickers seeing repeat unusual options activity and offer alerts to help traders monitor activity around watchlisted tickers. They also offer historical options activity data so you can see how options for a ticker were traded in recent days.

One nice feature of Bread Alerts is that it displays a chart of tickers experiencing the most bullish and bearish activity each day. You can see the total number of large orders and the total premiums paid. Similar charts are available in Optionsonar and Unusual Whales.

Momentum

A unique feature of Bread Alerts is its proprietary system for estimating the momentum of specific ticker symbols based on options activity. The platform displays the total premiums paid for calls and puts for specific tickers each day and the percentage of options purchased for expiration dates within the next one, two, or three months. Based on this data, Bread Alerts offers an estimate of how bullish or bearish a ticker’s momentum is.

It’s a little bit difficult to use this data effectively, as it aggregates all options activity and doesn’t provide data about the specific orders that make up the total call and put purchases. However, it can be useful to confirm that the overall momentum for a ticker is heading in the same direction as an unusually large options trade identified using the order flow scanner.

Customization and Layout

Bread Alerts offers few customization options, which is both good and bad. On the one hand, Bread Alerts is straightforward to use and only takes a few minutes to learn. On the other hand, there’s no way to set up alerts for unusual options order flow around specific tickers or options to sell with especially high Toast Meter ratings. You also can’t save or export data from the platform.

Bread Alerts Platform Differentiators

Bread Alerts is unique in that it combines a tool for traders who want to sell options with an unusual options order flow scanner, which can be used by a variety of stock and options traders. This combination is nice, although Bread Alerts doesn’t offer enough features or customization options with either tool to help them stand out. Competing platforms like Optionsonar and Unusual Whales both offer more comprehensive tools for analyzing unusual options order flow. Option Samurai offers more in-depth tools for advanced options traders who want to compare strategies and manage risk.

What Type of Trader is Bread Alerts Best For?

Bread Alerts is best suited for traders who want to sell covered call or cash-secured put options. It makes finding and quickly evaluating these types of trades simple, which is helpful for beginners. More advanced options traders who want to compare selling options with other options trading strategies will likely find Bread Alerts to be lacking and may benefit more from a comprehensive strategy platform like Option Samurai.

Pros

• Scanner to quickly find covered call and cash-secured put options to sell
• Displays the potential return and likelihood of success for selling options
• Real-time scanner for unusually large options trades
• Calculates daily momentum for tickers based on options activity
• Very beginner-friendly

Cons

• Few customization options and no alerts
• Doesn’t offer tools to compare options strategies