Rookie needs help decoding options and where to begin?

Discussion in 'Options' started by freeManSon, Feb 4, 2024.

  1. Another abbreviation - IV? Implied Volatility? Will check it out. Thanks!
     
    #11     Feb 5, 2024
  2. wartrace

    wartrace

    Option Volatility and Pricing: Advanced Trading Strategies and Techniques
    by Sheldon Natenberg


    Read this book
     
    #12     Feb 5, 2024
    murray t turtle likes this.
  3. newwurldmn

    newwurldmn

    I gave your first like and almost took it away because you are listening to Quanto.

    Many people have studied OI and volume but the results (at least publicly) aren’t very good. The reason is that you don’t know the motivation of the buyer and the seller. If both are directional then there will be no impact. If one is not directional there will be an impact (especially if the directional guy is buying). If both are not directional then there might be an impact but it won’t be perpetrated by the options trade itself.

    Further, you have to look at options in totality with their underlying as a lot of the risks generated from the OI is offset within other OI.
     
    #13     Feb 5, 2024
    ironchef and freeManSon like this.
  4. zdreg

    zdreg

    Then decoding options will be a snap. However,there is a big difference between understanding and decoding.
     
    #14     Feb 5, 2024
  5. Quanto

    Quanto

    Getting historical options data is not easy, and is costly :-(
    Some companies offer historical options data, for example ORATS here (they have also special prices for ET users, just ask them).

    A budget solution for some few select tickers like SPX could maybe the following be (but I have no experience with them):
    https://www.optionsdx.com/shop/

    Another possibility is to have an API access to your broker and load from there if they have historical data, OR create your own database (ie. store in directories and files, or in a real database) by making snapshot downloads via the API say every 15 minutes of the realtime options chain data.

    Another budget solution is YahaooFinance via API access: https://financeapi.net/pricing
    But I think they don't offer historical data, just current data 15 minutes or so delayed.

    You can also ask and also search in the "Data Sets and Feeds" forum here.
     
    Last edited: Feb 5, 2024
    #15     Feb 5, 2024
  6. =)

    I listen to all and make judgment self. Like when I read every book there was to read about trading futures and fx...in the end 99.9% of books was good for fireplace to keep you warm on winter nights. =) And please do not remove the like - did not know there was a war going on in here, but my options are few ..lol
    Visited many discord channels and came to conclusion all was in the same category as the books I mentioned above.
    So here I am! And I like it!
     
    #16     Feb 5, 2024
    newwurldmn likes this.
  7. zdreg

    zdreg

    Like is an option to rate a post. Removing the like may be due to a typo or a change of mind.
     
    #17     Feb 5, 2024
  8. Cabin1111

    Cabin1111

    I am not this person...

    Any fair/good trader can hold a 1/2 hour conversation about the below...

    Could you talk with yourself or to anybody about how market makers work and how dark pools work??

    Something to chew on...
     
    #18     Feb 5, 2024
  9. zghorner

    zghorner

    I can tell you are going to make a lot of money.
     
    #19     Feb 5, 2024
    taowave likes this.
  10. taowave

    taowave

    Read a decent book on options that's digestable,and look at a program like OptionStrat.I use Orats,but it's above your pay grade right now..

    Optionstrat is great for beginners..

    I wouldn't waste your time with OI and volume.Understand the option greeks , Vol and take it from there..



     
    #20     Feb 5, 2024