Does anyone offer intraday options charts?

Quote from Zephas:

I got the options overlay to work in the Prophet charts. I'm still digesting what I'm looking at to figure out if this will help me or not.

Attached is a screen print with for IWM 65 Calls. I had to change the chart type to "line" otherwise the option price disappears. The red line is moving average, and there is a Bollinger band in blue.

I'm trying to figure out if this confirms my theory that the option price does not swing as much as the underlying price and therefore is better for scalping trades on indexes? I am having much better P/L using the options than by trading the underlying.

BTW - the strategy is to buy Calls or Puts based on the price movement. I look for price reversals and use FisherTransform, ChandeMomentum Oscillator, MACD as well as some MA's on the upper screen.
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My attachment was lost. Is there a secret to that?
 

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Quote from Zephas:

I tried to chart option strikes in TOS, but the print is random and has huge gaps in it. (I enter the option or "OPRA" code into the chart. For example RUT September 660 calls would be ".RUT100918C660")

I got in contact with the charts experts and he told me to just follow the underlying price. That's all I need to trade the option - can you believe that?

I also tried using the Active Trader (DOM price ladder) so I could do one click buys but it looks terrible and they really discourage you from using it for that.

Can Tradestation, Neoticker, or ? provide streaming option prices as well as a DOM for one-click buys and sells? It would also be nice to be able to overlay the option and the underlying price together to look for divergence. Is there a better way to do this or am I chasing windmills?
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What particular benefit do you receive by charting the options?
 
Quote from atticus:

What particular benefit do you receive by charting the options?
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No benefit received as of yet since I just now figured out how to start seeing this in my Prophet charts. And I'm trying to analyze what I'm seeing.

The idea is to use it in an options scalping strategy. Where I buy ATM Puts or Calls (depending on direction) on an index like RUT as opposed to the related Futures contracts.

I have had a better P/L with the options than with the Futures contracts. My observation is that the index price is not as choppy as the Futures price, and therefore the option price (which is actually trade able) would be smoother than the Futures price as well and easier to take advantage of price swings.

What I'm seeing seems to confirm that. But an added twist is that the the index price and the option prices sometimes move in opposite directions. Also the chart is lagging the option chain price.

So I'm still wondering if insanity has hit, or if I have stumbled across something worth pursuing further.
 
Quote from Zephas:

No benefit received as of yet since I just now figured out how to start seeing this in my Prophet charts. And I'm trying to analyze what I'm seeing.

The idea is to use it in an options scalping strategy. Where I buy ATM Puts or Calls (depending on direction) on an index like RUT as opposed to the related Futures contracts.

I have had a better P/L with the options than with the Futures contracts. My observation is that the index price is not as choppy as the Futures price, and therefore the option price (which is actually trade able) would be smoother than the Futures price as well and easier to take advantage of price swings.

What I'm seeing seems to confirm that. But an added twist is that the the index price and the option prices sometimes move in opposite directions. Also the chart is lagging the option chain price.

So I'm still wondering if insanity has hit, or if I have stumbled across something worth pursuing further.
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I suggest you get a new price feed. I would also suggest you avoid charting the option, it's a waste of time. Charting the implied vol can be useful, but there are too many variables to make the option chart of any predictive-value.

There are some nuances related to hedging activity; a larger order enters the post and the locals are forced to hedge in shares, but that's probably not what you're witnessing.
 
Quote from atticus:

I suggest you get a new price feed. I would also suggest you avoid charting the option, it's a waste of time. Charting the implied vol can be useful, but there are too many variables to make the option chart of any predictive-value.
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Either the chart is lagging the price feed or there is some other kind of pressure on the option price since at times I have noticed large up or down turns in the option chain before the chart changes. (Quants at play?)

Can anyone help validate the theory that the Russel index option price is less volatile then the Russel index future price and therefore would be easier to scalp? This has been my experience, but wanted some validation.

Maybe I need a quant system of my own to take advantage of fluctuations in extrinsic values over short time frames. :-)
 
Quote from Zephas:

Either the chart is lagging the price feed or there is some other kind of pressure on the option price since at times I have noticed large up or down turns in the option chain before the chart changes. (Quants at play?)

Can anyone help validate the theory that the Russel index option price is less volatile then the Russel index future price and therefore would be easier to scalp? This has been my experience, but wanted some validation.

Maybe I need a quant system of my own to take advantage of fluctuations in extrinsic values over short time frames. :-)
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If the Russell cash index were trading in units of volatility, the options would be vol of vol, or variance. No, the options should not be less volatile, as var is more "volatile" than vol. The options are less granular on price change, if for no other reason that they are trading cheaper in notional terms. There are other factors as well.

You're probably relating ease of scalping to price-jumps as well as the limited-risk associated with long gamma.
 
The true hedge to RUT options is not the RUT index since you cant trade the index. If you think there is anything to be gained from options charts, and I do not, then plot them vs. the future.
 
Quote from atticus:

If the Russell cash index were trading in units of volatility, the options would be vol of vol, or variance. No, the options should not be less volatile, as var is more "volatile" than vol. The options are less granular on price change, if for no other reason that they are trading cheaper in notional terms. There are other factors as well.

You're probably relating ease of scalping to price-jumps as well as the limited-risk associated with long gamma.
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It makes sense that the price granularity of the option is what seems to be giving the edge. It moves in $5 increments. So I guess it's easier to enter and exit at the right point because it takes it longer for the price to change when the underlying changes direction.
 
Quote from xflat2186:

The true hedge to RUT options is not the RUT index since you cant trade the index. If you think there is anything to be gained from options charts, and I do not, then plot them vs. the future.
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So the thinking is that a price change in the RUT future could be an advance signal for a change in the RUT option price? Sounds interesting. I wonder if the whipsaw in the futures price could negate that somewhat though.
 
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