Options charts bigcharts
Indicators is the next grouping to be modified. The use of the 20 day moving average compared to the actual stock price enables us to assess if the stock is in an uptrend or downtrend. Upper Indicator is set to Bollinger Bands. These bands show the one sigma stock price range. They can be used with stock volume to assess if a new price trend is being established or just a reversion to the norm, which is the 20 day moving average.
Some traders use high volume penetration of a band for initiating a long call or put trading opportunity. We use the default settings for price and background.
But change the chart size to BIG for easier reading of the display. It can give a little background into what you might be buying? Should I use a trailing stop, or a contingent order based on the target price of my stock to sell my options. I know that with trailing stops, it is difficult to determine the bailout percentage since their are many variables involved and the chance of being whipsawed is high. More important than a chart of option prices is a chart of option volatility. I believe Yahoo finance has stock charts of options.
Otherwise, all the pay packages like esignal have option charts. Does anyone knows if there is any settings that can be set on TOS to reflect exactly the same as those in iVolatility? If it can be done, the time taken to check IV on every possible candidate can be reduced significantly. I found out after 15 years of option trading, that the more bells and whislels you use, the more you lose you focus. Although it is true that charting any option can leave great gaps, it is the history of the options particular trading that is important… which is what I believe was the real reason why Pete wanted option charts.
Although looking at the Delta does give a reference for performance in comparison to the underlying stock, it does not tell us what the historical performance. In reality the Delta does not need to be considered to much being that the further in the money you go the closer to 1. However, this tells me nothing about the historical value which is important in projecting future value.
But lo and behold, my puts, instead of increasing in value, got cut in half. Later I saw that the Delta was at 0. Nevertheless, had I had access to the historical information of the Puts performance relative to the stock price I would never had bought the Puts. I would like to recover some of my loss but do not want to expose myself to huge risks on the leg I sold?
The options are very ill-liquid and the charts have big gaps. The only option charts I look at graph the implied volatility. They allow me to gauge the relative price of the options. I know optionsXpress offers this in their paltform. If you know of a free resource for charting option implied volatility, please share. So I can better calculate the entrance or exit point of my option to generate a satisfying return. Thanks for the comment. Are you familiar with delta and gamma? There are many software programs that will allow you to perform scenario analysis.
All you need is a relative comparison. If the option is liquid enuff like aapl etc, then you may see some trending. BUt, it sometimes is just a quick look at the effects of the IV and the underlying together. A chain could trade for weeks at 25 bucks and then go crazy, up and down between and bucks. It can give a little background into what you might be buying? Should I use a trailing stop, or a contingent order based on the target price of my stock to sell my options. I know that with trailing stops, it is difficult to determine the bailout percentage since their are many variables involved and the chance of being whipsawed is high.
More important than a chart of option prices is a chart of option volatility. I believe Yahoo finance has stock charts of options.