When deciding which stock to invest in, we often analyze various information and data.

The same applies to options.

Once you have selected a stock and entered the options chain, you can see options with different expiration dates and strike prices. How to filter and analyze them? You may get more useful reference information via the "Options Analysis" on moomoo.

1. Where is the "Options Analysis" function?

1. Enter a stock's "Detailed Quotes" page.

2. Tap "Options"> "Analysis".

How to use the “Options Analysis” function?

We can see four charts under "Options Analysis", including Volume by Strike Price, Open Interest by Strike Price, Volatility Term Structure, and Volatility Smile.

Measure option liquidity

Volume by Strike Price

To measure the activity and liquidity of an option, you may refer to the options volume distribution data.

1. In the "Volume by Strike Price" chart, you can toggle between "Call", "Put", or "Total", and choose a different expiration date.

2. Drag the chart to view the options volume distribution across different strike prices.

3. Long press to show the Cross Curve for detailed data.

Open interest distribution

Apart from volume, open interest is another important indicator of option liquidity.

1. In the "Open Interest by Strike Price" chart, you can toggle between "Call", "Put", or "Total".

2. Drag the chart to view the option open interest distribution across different strike prices. Generally, higher open interest means greater liquidity and a more reasonable bid-ask spread.

3. Long press to show the Cross Curve for detailed data.

Overvalued or undervalued

Volatility Term Structure

Implied volatility is one of the indicators used to tell whether the current price of an option has deviated from its actual price. An unusual spike or plunge in volatility generally means that the option price may be overvalued or undervalued.

1. The Volatility Term Structure chart shows the implied volatility change of options at different expiration dates by composite, call options, and put options.

2. You can customize four strike prices by tapping "Strike Price" on the right, and ticking the prices.

3. Long press to show the Cross Curve for detailed data.

Volatility Smile

1. The " Volatility Smile " chart shows the implied volatility change of options at different strike prices by composite, call options, and put options.

2. Tap "Expiration Date" on the right to change the date.

3. Long press to show the Cross Curve for detailed data.