Understanding the Option Chain
The option chain is a crucial tool for options traders, providing real-time data about available options contracts. Let's explore how to use Stolo's option chain effectively.
Accessing the Option Chain
- Navigate to the Analysis section
- Select your preferred stock/index
- Click on the Option Chain tab
Key Components
Strike Prices
- Center column showing available strike prices
- Current underlying price highlighted
- ITM/OTM strikes clearly differentiated
Call Options (Left Side)
- Bid/Ask prices
- Open Interest
- Volume
- Greeks (Delta, Theta, etc.)
- IV (Implied Volatility)
Put Options (Right Side)
- Same data points as calls
- Mirrored layout for easy comparison
Advanced Features
Filters and Customization
- Expiry date selection
- Strike range adjustment
- Greek value filters
- Volume/OI thresholds
Visual Indicators
- Color coding for quick analysis
- Highlight profitable strikes
- PCR (Put-Call Ratio) indicators
Pro Tips
-
Quick Analysis
- Use built-in filters for high-volume strikes
- Monitor IV skew across strikes
- Track significant OI changes
-
Strategy Building
- Select multiple strikes for spread strategies
- Compare IVs for volatility plays
- Analyze risk/reward ratios
Common Use Cases
-
Directional Trading
- Finding liquid strikes
- Analyzing premium decay
- Selecting optimal expiry
-
Volatility Trading
- IV comparison across strikes
- Term structure analysis
- Skew assessment