As I flip through different option chains for different stocks, how can I tell if the options are expensive or cheap? Options traders seem to do this very quickly.
Well they claim to. You will never know that until the future passes. All we can do is compare current implied vol with other similar symbols and the past. Assuming that current premiums are expensive or cheap is saying that Market Makers are wrong. Very hard to do that constantly and be right.
That is probably why I am confused. It didn't seem realistic that it could be determined quickly with little effort.
It is not easy or great for a retail trader, but this would help. https://www.livevol.com/online-market-scanning-and-analysis-software/ Lightspeed Financial Services Group LLC. is not affiliated with this service providers. Data, information, and material (“content”) is provided for informational purposes only. This content neither is, nor should be construed as an offer, solicitation, or recommendation to buy or sell any securities. Any investment decisions made by the user through the use of such content is solely based on the user’s independent analysis taking into consideration your financial circumstances, investment objectives, and risk tolerance. Lightspeed Financial Services Group LLC does not endorse, offer nor recommend any of the services provided and any service used to execute any trading strategies are solely based on the independent analysis of the user.
on barchart.com click on options then highest implied volatility and you will get list. who is your broker? On IB in the top right of the chain it lists implied volatility. You can add implied volatility for each option by right clicking in the column headers and adding implied volatility from the options section. Also when you put the mouse to the bid or ask it will tell you the implied.