How to Analyze an Option in depth
How to determine if the option liquidity is high and filter out the options you want?
The Options Analysis feature on moomoo may help you out.
Where can I find the Options Analysis feature?
1. Enter a stock's Detailed Quotes page.
2. Tap Options > Analysis.
How to use the Options Analysis feature?
We can see four charts under Options Analysis, including：
1. Open Interest by Strike Price
a. You can toggle the option type: Call, Put, or Total, and select a specific expiration date.
b. Drag the chart to view the open interest distribution across different strike prices.
c. Pinch to zoom in and out. Long press to reveal the Cross Curve for detailed data.
2. Volume by Strike Price
a. You can toggle the option type: Call, Put, or Total, and choose a specific expiration date.
b. Drag the chart to view the options volume distribution across different strike prices.
c. Pinch to zoom in and out. Long press to show the Cross Curve for detailed data.
3. Volatility Term Structure
a. You can view implied volatility changes in composite, call and put at different expiration dates.
b. Tap Strike Price on the right to customize the strike price.
c. Long press to show the Cross Curve for detailed data.
4. Volatility Smile
a. The Volatility Smile chart shows implied volatility changes in composite, call and put at different strike prices.
b. Tap Expiration Date on the right to change the date.
c. Long press to show the Cross Curve for detailed data.
Opening new options positions close to or on their expiration date comes with a substantial risk of losses for reasons that include potential volatility of the underlying security and limited time to expiration. Options trading entails significant risk and is not appropriate for all customers. It is important that investors read the Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request.
This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. Read more