Introduction:
Stolo’s “Option Snapshot” feature is a comprehensive tool designed for analyzing options data, Users can select their preferred expiration date and strike prices, and the feature generates a table and interactive graphs for call and put options at the chosen strikes.
Basic Terms:
a) Strike: Strike refers to the price at which an option holder has the right to buy (for call options) or sell (for put options) the underlying asset.
b) Call Option: A call option gives the holder the right (but not the obligation) to buy the underlying asset at a specified strike price before or on the expiration date.
c) Put Option: A put option gives the holder the right (but not the obligation) to sell the underlying asset at a specified strike price before or on the expiration date.
d) Open Interest (OI): OI represents the total number of open or outstanding options contracts for a particular strike and expiration. It reflects market interest and potential liquidity.
Why Use It?
-> The “Option Snapshot” feature empowers traders by offering flexibility in selecting expiration dates and strike ranges, aligning with individual trading strategies.
-> It provides a consolidated view of call and put options, along with interactive graphs and data, facilitating thorough options contract analysis.
-> Users can gauge potential profit and loss scenarios, track historical price ranges (OHLC), and assess option activity through OI and volume data.
Navigation:
Analysis-> Instrument Overview-> Options-> Option Snapshot
How to Use It:
-> Start by selecting your preferred expiration date and strike price(s).
-> The tool generates a table with strike prices in the middle column, call option data on the left, and put option data on the right.
-> Interactive graphs for call and put sides allow visual analysis of option price movements.
-> Hover over graphs to access OHLC values, OI, and volume information for each strike.
FAQs:
a) What is Open Interest (OI), and why is it important in options trading?
-> Open Interest (OI) is the total number of open options contracts for a specific strike and expiration. It’s important as it provides insights into market interest and potential liquidity, helping traders assess the popularity of specific options.
b) How can I benefit from selecting a specific strike price or strike range?
-> Selecting a strike price or range allows traders to tailor their options analysis to match their trading strategies. For example, choosing a lower strike for put options may provide downside protection in a bearish market.
c) Why are OHLC values important for options analysis?
-> OHLC values (Open, High, Low, Close) help traders understand the price range within which an option has traded during a given timeframe. This information aids in assessing historical price movements and potential price reversal points.
Support
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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.