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Where can I get free intra-day option charts?
- Thread starter emk662
- Start date
Sure, with options you have 3 main factors in the pricing of an option: the value of the underlying stock, volatility, and time value. So for instance, a fairly volatile stock like JNPR has a high volatility value priced into most of its options. In addition, the further out the expiration of the option is, the more expensive it will be due to its time value.
As an example, let's say JNPR is at 45. The May 40 puts are selling for $4.00 per contract. Since JNPR isn't below 40, the puts have no intrinsic value, so if they were priced just based on the stock's price, they should be worthless. However, the reason they're still going to $4.00 is because JNPR is volatile and could make a decent move and quickly be in the money, and also because there's more than a month until the option expires. So even if JNPR started going up, the value of the May 40 put wouldn't necessarily go down proportionally, since its value is based on volatility and time. Likewise, even if JNPR stayed at 45 and didn't move for the next month, the puts would continue to decrease in value as the time value erodes.
That is why looking at charts for options doesn't do much for you, since if you did look at one, it would often look very strange and not at all necessarily resemble the stock's chart. The only options that move most reliably with the stock are deep in the money options.
As an example, let's say JNPR is at 45. The May 40 puts are selling for $4.00 per contract. Since JNPR isn't below 40, the puts have no intrinsic value, so if they were priced just based on the stock's price, they should be worthless. However, the reason they're still going to $4.00 is because JNPR is volatile and could make a decent move and quickly be in the money, and also because there's more than a month until the option expires. So even if JNPR started going up, the value of the May 40 put wouldn't necessarily go down proportionally, since its value is based on volatility and time. Likewise, even if JNPR stayed at 45 and didn't move for the next month, the puts would continue to decrease in value as the time value erodes.
That is why looking at charts for options doesn't do much for you, since if you did look at one, it would often look very strange and not at all necessarily resemble the stock's chart. The only options that move most reliably with the stock are deep in the money options.
option prices are reflected by the underlying stock, not the other way around. Options don't lead stocks, stocks lead options. The volume in the underlying stock is always a lot more than the options.
You won't find many charts on options intraday because most option traders watch the underlying stock. There could also be 200 options on one stock. That's a lot of charts for a stock. Too many to keep track of at once.
The other thing that affects options Zboy didn't cover is supply /demand. Options in heavy demand will require a higher premium.
Options that are deep in the money are also the least liquid. (meaning they don't trade as heavily)
rtharp
You won't find many charts on options intraday because most option traders watch the underlying stock. There could also be 200 options on one stock. That's a lot of charts for a stock. Too many to keep track of at once.
The other thing that affects options Zboy didn't cover is supply /demand. Options in heavy demand will require a higher premium.
Options that are deep in the money are also the least liquid. (meaning they don't trade as heavily)
rtharp
zboy,
Are you useing IB for your option trading? How are your fills? Can you get filled between the spread or do you have to accept the bid and ask? How do you route your order? I don't recall much discussion on these boards about the best way to enter option orders. Any OEX or QQQ option traders out there?
Thanks,
Carl
Are you useing IB for your option trading? How are your fills? Can you get filled between the spread or do you have to accept the bid and ask? How do you route your order? I don't recall much discussion on these boards about the best way to enter option orders. Any OEX or QQQ option traders out there?
Thanks,
Carl
Hi Carl,
I've found IB to be excellent with options trading. Unless I get routed to one of the slower exchanges like AMEX, I usually get filled almost instantaneously on market orders. You can get filled between the spread but can't count on it, since options are far less liquid than stocks. If you really want in right away, you usually have to give up the spread and go after the bid or ask. I normally have best execution open, as well as ISE and/or PHLX. I first try best execution, and if the inside quote is from the ISE or PHLX, I'm usually filled immediately. If it's AMEX, CBOE or PSE there's usually a wait, and if I need in right away and ISE or PHLX have close enough quotes, I'll cancel and go directly after one of them.
I've found IB to be excellent with options trading. Unless I get routed to one of the slower exchanges like AMEX, I usually get filled almost instantaneously on market orders. You can get filled between the spread but can't count on it, since options are far less liquid than stocks. If you really want in right away, you usually have to give up the spread and go after the bid or ask. I normally have best execution open, as well as ISE and/or PHLX. I first try best execution, and if the inside quote is from the ISE or PHLX, I'm usually filled immediately. If it's AMEX, CBOE or PSE there's usually a wait, and if I need in right away and ISE or PHLX have close enough quotes, I'll cancel and go directly after one of them.