Options Chain

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Contents

Option Chain

What is an Option Chain?

An option chain, also known as an option matrix, is a listing of all available option contracts, both puts and calls, for a given security. It shows all puts, calls, strike prices, and pricing information for a single underlying asset within a given maturity period.

Understanding Option Chain

Option chains are probably the most natural form of presenting information for most retail investors. The option quotes are listed in an easy-to-understand sequence. Traders can find an option premium by following the corresponding maturity dates and strike prices. Depending on the presentation of the data, bid-ask quotes, or mid quotes, are also displayable within an option chain.

The majority of online brokers and stock trading platforms display option quotes in the form of an option chain using real-time or delayed data. The chain display allows quick scanning of activity, open interest, and price changes. Traders can hone in on the specific options required to meet a particular options strategy.

Traders may quickly find an asset’s trading activity including the frequency, volume of trading, and interest by strike price and maturity months. Sorting of data may be by expiration date, soonest to furthest, and then further refined by strike price, from lowest to highest.

Key Takeaways

  • An option chain, also known as an option matrix, is a listing of all available option contracts, both puts and calls, for a given security.
  • The option chain matrix is most useful for the next trading day.
  • Traders typically focus on ‘last price’, ‘net change’, ‘bid’ and ‘ask’ columns to assess current market conditions.

Decoding the Option Chain Matrix

The terms in an options matrix are relatively self-explanatory. A skilled user can quickly decipher the market regarding price movements and where high and low levels of liquidity occur. For efficient trade executions and profitability, this is critical information.

There are four columns of information that traders focus on to assess current market conditions. The columns are Last Price, Net Change, Bid, and Ask.

  1. The last price column displays the latest trade price captured and reported.
  2. Information in the net change column reflects the direction (up, down, or flat) for the underlying asset, as well as the amount of price variance from the previous trade.
  3. Review of the bid column shows information about how much a trader could expect to receive on the sale of that option at that time-frame.
  4. Information about how much the trader can expect to pay to purchase that option at that time appears in the ask column.

In the columns following the four listed above, you will find important information to gauge market size for a given option and how traders are committed at each price level.

Trading volume, or the number of contracts that change hands in a given day, indicates how much liquidity there might be for any given option. Open interest measures the total number of options outstanding on each strike and maturity, allowing you to gauge the scale of market commitment.

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The real level of open interest varies intraday. Market makers report the information shown in the option chain only at the end of each trading day. The option chain matrix is most useful for the next trading day.

NVDA Option Chain

Detailed and comprehensive option chain for each expiration listed for NVDA. Includes volume, open interest, implied volatility, and bid/ask for each strike. Investigate further by clicking on a strike and seeing trade activity, volatility movement, and yesterday’s closing values.

Most Active Call & Put

1 Month High/Low

Avg Up/Avg Down Move

Nvidia (NVDA) Option Chain Frequently Asked Questions

Where can I find Nvidia (NVDA) options prices?

The Nvidia (NVDA) option chain shows the call options quotes to the left side of the table and the put options quotes on the right side. The bid is where the current market is indicating a desire to buy at the specified price, while the ask is where the market is indicating a desire to sell at the specified price.

Where can I find the delta of Nvidia (NVDA) options?

Delta is a value that represents the ratio between change in price of the underlying asset, and the change in price of the derivative (an option). For call options, delta is usually positive, meaning if the price of the underlying stock goes up, the price of the call option will go up. For put options, it is typically negative.
A delta of 0.75 means that if the underlying stock price goes up $1, then the price of the option will go up $0.75. Correspondingly, a delta of -0.75 means the option price would go down $0.75 if the the stock price goes up $1.
On Market Chameleon’s Nvidia (NVDA) option chain, the delta of each call option is in the left-most column of the table above. The delta of each put option is in the right-most column of the table.

What is the options volume for Nvidia (NVDA)?

Under the table that says Select Expiration above, you will see a list of expirations for Nvidia (NVDA). Each expiration has the current options trading volume listed to the right side of the table.
You can also see the current options trading volume for each individual option by looking at the option chain table above. Call volume is towards the left-hand side, while put volume is towards the right-hand side.

Where can I find options time and sales information for Nvidia (NVDA)?

As a feature of Market Chameleon’s option chain, you can view the list of option trades for each individual Nvidia (NVDA) option by clicking on the corresponding volume number in the table above. It will bring up a display with the time and sales listed. On this display, you can see trade details, like time of the trade, price, condition, the trade’s implied volatility, and the exchange on which the trade was executed. Click here to watch an instructional video on option time and sales.

Can I find summary statistics for time and sales of Nvidia (NVDA) options?

The time and sales display also shows summary statistics for all the trades of that particular option. You can see total options volume, the number of individual trades, the total notional value of the trades, open interest, the high price and low price that the option traded, and the range of the implied volatility for the day’s trades. Click here to watch a helpful video on option time and sales statistics.

How do I calculate an option price for Nvidia (NVDA)?

In the option chain, we provide a column that calculates a theoretical option price for each Nvidia (NVDA) option, based on a specified option pricing model. You can compare the market’s current prices against a series of benchmarks, to see if the current price is overvalued or undervalued. To change the benchmark, click on the box above the option chain titled Theoretical Value. You are able to run theoretical values for the following parameters:

  1. the stock’s historical volatility for the last 20 days
  2. the stock’s historical volatility for the last year
  3. your own custom volatility assumption
  4. historical median implied volatility for options that have had the same number of days to go before expiration and are a similar distance from the at-the-money spot
  5. an option price calculated using the results of a historical stock return distribution

Click here to watch an instructional video on theoretical option prices using a return distribution, or here to watch a video on pricing options using various underlying volatility inputs.

Where can I find option greeks for Nvidia (NVDA)?

In the Nvidia (NVDA) option chain above, you will see one column to the furthermost left-hand side and one column to the furthermost right-hand side that have a drop down icon. If you click on these drop downs, you can change the view to see different option greeks, including:

  1. Delta
  2. Open Interest
  3. Gamma
  4. Vega
  5. Theta
  6. Rho
  7. Implied Volatility change from the option’s previous close
  8. Market price change from the option’s previous close

How do you calculate profit or loss of Nvidia (NVDA) options or option strategies?

Market Chameleon provides a feature to run an options payout diagram for Nvidia (NVDA) options. This enables you to see potential profit or loss of a particular option or particular option strategy. In the NVDA Option Chain, you can select the option by clicking on the bid price (to simulate selling the option) or clicking on the ask price (to simulate buying the option). A display will appear with several more inputs to test your theoretical option trade. Click “Load Strategy” to generate a payout diagram.

Can I get the implied volatility rank for a specific Nvidia (NVDA) option?

The option chain has an implied volatility rank for each Nvidia (NVDA) option, based on historical IV observations. For each option, historical IV values are compiled to match the same number of days til expiration and how far away the strike is from the spot price. The option’s IV percent rank shows you the comparison between the current IV and those historical results. Click here to watch an instructional video on IV % Rank.

How do I find Nvidia (NVDA) historical option prices?

You can find historical Nvidia (NVDA) option prices by clicking on the date-selection drop down at the top left of the option chain. A calendar widget will appear, enabling you to select a historical date. There, you can see the option chain as it was on the close of that particular trading day.

Can I run a backtest for Nvidia (NVDA) options?

At the top of the option chain, you will see toggles for “Backtest” on either the call side (to the left) or the put side (to the right). Clicking on that toggle will display a new set of columns related to the backtest — including historical win rate and average return. Clicking on the win rate will bring up a backtest display for that particular option. On the display, you can change parameters and compare NVDA option backtest results for 3 separate hedging techniques:

  1. being long the option and holding until expiration (un-hedged)
  2. hedging the delta at the time of the trade and holding until expiration
  3. re-hedging the delta at the end of each day from trade until expiration (a method of trading gamma)

Different hedging techniques work for different options investors, so Market Chameleon includes all 3 choices as a way of comparison.

GLD Option Chain

Detailed and comprehensive option chain for each expiration listed for GLD. Includes volume, open interest, implied volatility, and bid/ask for each strike. Investigate further by clicking on a strike and seeing trade activity, volatility movement, and yesterday’s closing values.

Spot Price

Most Active Call & Put

1 Month High/Low

Avg Up/Avg Down Move

SPDR Gold Trust (GLD) Option Chain Frequently Asked Questions

Where can I find SPDR Gold Trust (GLD) options prices?

The SPDR Gold Trust (GLD) option chain shows the call options quotes to the left side of the table and the put options quotes on the right side. The bid is where the current market is indicating a desire to buy at the specified price, while the ask is where the market is indicating a desire to sell at the specified price.

Where can I find the delta of SPDR Gold Trust (GLD) options?

Delta is a value that represents the ratio between change in price of the underlying asset, and the change in price of the derivative (an option). For call options, delta is usually positive, meaning if the price of the underlying stock goes up, the price of the call option will go up. For put options, it is typically negative.
A delta of 0.75 means that if the underlying stock price goes up $1, then the price of the option will go up $0.75. Correspondingly, a delta of -0.75 means the option price would go down $0.75 if the the stock price goes up $1.
On Market Chameleon’s SPDR Gold Trust (GLD) option chain, the delta of each call option is in the left-most column of the table above. The delta of each put option is in the right-most column of the table.

What is the options volume for SPDR Gold Trust (GLD)?

Under the table that says Select Expiration above, you will see a list of expirations for SPDR Gold Trust (GLD). Each expiration has the current options trading volume listed to the right side of the table.
You can also see the current options trading volume for each individual option by looking at the option chain table above. Call volume is towards the left-hand side, while put volume is towards the right-hand side.

Where can I find options time and sales information for SPDR Gold Trust (GLD)?

As a feature of Market Chameleon’s option chain, you can view the list of option trades for each individual SPDR Gold Trust (GLD) option by clicking on the corresponding volume number in the table above. It will bring up a display with the time and sales listed. On this display, you can see trade details, like time of the trade, price, condition, the trade’s implied volatility, and the exchange on which the trade was executed. Click here to watch an instructional video on option time and sales.

Can I find summary statistics for time and sales of SPDR Gold Trust (GLD) options?

The time and sales display also shows summary statistics for all the trades of that particular option. You can see total options volume, the number of individual trades, the total notional value of the trades, open interest, the high price and low price that the option traded, and the range of the implied volatility for the day’s trades. Click here to watch a helpful video on option time and sales statistics.

How do I calculate an option price for SPDR Gold Trust (GLD)?

In the option chain, we provide a column that calculates a theoretical option price for each SPDR Gold Trust (GLD) option, based on a specified option pricing model. You can compare the market’s current prices against a series of benchmarks, to see if the current price is overvalued or undervalued. To change the benchmark, click on the box above the option chain titled Theoretical Value. You are able to run theoretical values for the following parameters:

  1. the stock’s historical volatility for the last 20 days
  2. the stock’s historical volatility for the last year
  3. your own custom volatility assumption
  4. historical median implied volatility for options that have had the same number of days to go before expiration and are a similar distance from the at-the-money spot
  5. an option price calculated using the results of a historical stock return distribution

Click here to watch an instructional video on theoretical option prices using a return distribution, or here to watch a video on pricing options using various underlying volatility inputs.

Where can I find option greeks for SPDR Gold Trust (GLD)?

In the SPDR Gold Trust (GLD) option chain above, you will see one column to the furthermost left-hand side and one column to the furthermost right-hand side that have a drop down icon. If you click on these drop downs, you can change the view to see different option greeks, including:

  1. Delta
  2. Open Interest
  3. Gamma
  4. Vega
  5. Theta
  6. Rho
  7. Implied Volatility change from the option’s previous close
  8. Market price change from the option’s previous close

How do you calculate profit or loss of SPDR Gold Trust (GLD) options or option strategies?

Market Chameleon provides a feature to run an options payout diagram for SPDR Gold Trust (GLD) options. This enables you to see potential profit or loss of a particular option or particular option strategy. In the GLD Option Chain, you can select the option by clicking on the bid price (to simulate selling the option) or clicking on the ask price (to simulate buying the option). A display will appear with several more inputs to test your theoretical option trade. Click “Load Strategy” to generate a payout diagram.

Can I get the implied volatility rank for a specific SPDR Gold Trust (GLD) option?

The option chain has an implied volatility rank for each SPDR Gold Trust (GLD) option, based on historical IV observations. For each option, historical IV values are compiled to match the same number of days til expiration and how far away the strike is from the spot price. The option’s IV percent rank shows you the comparison between the current IV and those historical results. Click here to watch an instructional video on IV % Rank.

How do I find SPDR Gold Trust (GLD) historical option prices?

You can find historical SPDR Gold Trust (GLD) option prices by clicking on the date-selection drop down at the top left of the option chain. A calendar widget will appear, enabling you to select a historical date. There, you can see the option chain as it was on the close of that particular trading day.

Can I run a backtest for SPDR Gold Trust (GLD) options?

At the top of the option chain, you will see toggles for “Backtest” on either the call side (to the left) or the put side (to the right). Clicking on that toggle will display a new set of columns related to the backtest — including historical win rate and average return. Clicking on the win rate will bring up a backtest display for that particular option. On the display, you can change parameters and compare GLD option backtest results for 3 separate hedging techniques:

  1. being long the option and holding until expiration (un-hedged)
  2. hedging the delta at the time of the trade and holding until expiration
  3. re-hedging the delta at the end of each day from trade until expiration (a method of trading gamma)

Different hedging techniques work for different options investors, so Market Chameleon includes all 3 choices as a way of comparison.

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    Good for Beginners!
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