Introduction
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.
Live Trade through Option Chain:
Basic Terms
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
Video Explanation:
1) Option chain
2) Buildup
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.
Navigation
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.
FAQs
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.
Additional Resources
1. 5 Ways To Read And Interpret An Option Chain-> Link
2. How to Use An Option Chain: A Beginner’s Guide-> Link
Support
For further support and understanding join our trading community group-> Telegram Link
Disclaimer
The videos and content on this platform are purely for educational purposes to showcase the Stolo product and help people understand how the product works. We will not be responsible for your profit and loss. Please consult with your investment advisor before making any financial decisions.