Stolo’s Option Chain Platform is a robust tool for traders, providing real-time data on stock options. It offers live tick-by-tick information, support and resistance levels, trend analysis, and advanced filtering options.
a) LTP (Last Traded Price): The most recent price at which an option was traded.
b) Strike Price: The price at which both buyers and sellers of an options contract agree to execute an options contract
c) In the Money (ITM): An option whose strike price has already been surpassed by the current stock price. A call option is ITM if the strike price of the call is less than the underlying asset price. A put option is OTM if the put’s strike price is more than the underlying asset price.
d) Out of the Money(OTM): An option that has no intrinsic value, only extrinsic value. A call option is OTM if the strike price of the call is more than the underlying asset price. A put option is OTM if the put’s strike price is less than the underlying asset price.
e) At the Money (ATM): A scenario where the target price of a call or put option is identical to the underlying asset’s current market price
f) OI (Open Interest): The total number of outstanding option contracts.
g) Volume: The total number of option contracts traded.
h) Option Greeks: Measures like Delta, Theta, Vega, and Gamma, provide insights into option price sensitivity to different factors.
i) Support & Resistance: Price levels at which an asset tends to find buying (support) or selling (resistance) interest.
j) PCR (Put Call Ratio): A metric that compares the total open interest of put options to call options, indicating market sentiment.
k) Implied Volatility (IV): IV refers to the expected volatility around how low or high an underlying asset might fall or rise
1) Option chain
Why use it?
-> Stolo’s platform offers real-time insights and analysis, aiding traders in making informed decisions.
-> It simplifies complex concepts like support/resistance and Option Greeks, making them accessible.
-> Trend analysis helps traders anticipate market movements.
-> Data export and advanced filters offer customization and in-depth analysis.
Analysis-> Instrument Overview-> Option Chain
How to use it?
-> Access live tick-by-tick data for LTP, OI, Volume, Buildup, and Option Greeks.
-> Identify support and resistance levels based on OI data.
-> Utilize trend analysis to understand market direction.
-> Download data in Excel format for further study.
-> Apply advanced filters to focus on specific strike prices aligned with your trading strategy.
a) What is a Call Option?
-> A call option, commonly known as a “call,” is an options contract between a buyer and a seller that grants the buyer of the option the right to purchase a certain amount of an underlying asset (stocks, commodities, or currencies) at a certain price (strike price) within a certain time frame.
b) What is a Put Option?
-> A put option, commonly known as a “put,” is a contract that lies between a buyer and a seller of options that grants the buyer of the options the right to sell a defined amount of an underlying asset (stocks, commodities, or currencies) at a specific price (strike price) within a given time frame.
c) What is the significance of PCR (Put Call Ratio)?
-> PCR indicates market sentiment; a high PCR suggests bearish sentiment, while a low PCR suggests bullish sentiment.
d) How can I benefit from support and resistance levels?
Answer: Support levels can be potential entry points for buying, and resistance levels can be ideal for selling or taking profits.
e) Why is trend analysis important?
-> Trend analysis helps traders anticipate market movements, allowing them to adjust their strategies accordingly and potentially capitalize on market trends.
1. 5 Ways To Read And Interpret An Option Chain-> Link
2. How to Use An Option Chain: A Beginner’s Guide-> Link
For further support and understanding join our trading community group-> Telegram Link
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