Where Can I Find Stock Option Charts For Technical Analysis?
Posted by Pete Stolcers on March 9, 2007
Option Trading Question
I am relatively new to options and have been searching all over the web for resources to help me learn as much as I can. One of the things I cannot seem to find has been charts of option prices. Is there a site you can direct me to that provides option price charts?
Option Trading Answer
Most charting software will show option prices. You just have to know the required format. Some quote vendors put a “.” or a “+” before the 5 letter acromym. The bigger issue is the nature of your question. There is not much useful information in an option chart. Follow the stock, not the option. The stock price movement is rich with liquidity and information. The technical indicators and and technical analysis studies are valid.
The options are very ill-liquid and the charts have big gaps. The only option charts I look at graph the implied volatility. They allow me to gauge the relative price of the options. I know optionsXpress offers this in their paltform. If you know of a free resource for charting option implied volatility, please share.