Make good use of tools in options trading
How to use the options chain?
Options are a very powerful investment tool that can provide investors with different uses such as hedging risks, providing leverage, and increasing returns.
If you have a target stock and want to view related options, you can use the options chain tool.
How to find the options chain?
Click on a stock's quote page.
Select the "Options" tab or "Options">"Options Chain" next to the trade button.
How to trade using the options chain?
1. The page defaults to display all options for the nearest expiration date, click on 'Call'/'Put' to see Call/Put options.
2. Click to switch between different expiration dates
3. The white part of the options chain is out-of-the-money, while the blue part is in-the-money options. You can swipe left and right to see more field information.
4. You can switch options strategies at the bottom of the page.
Next, we will demonstrate with an example:
1. Suppose you hold Apple stocks, but anticipate a future drop in Apple's stock price within the next month. You wish to hedge the risk by using a one-legged strategy to buy Puts, so filter for 'put' options.
2. Choose an expiration date.
3. Select a strike price.
4. In the pop-up window, you can switch between buying/selling directions, modify the number of options, and view profit/loss analysis data.
5. You can also click on the options name to view detailed information about the related options and use the option price calculator to assist in making decisions.
After confirming your strategy, click on trade.
How to change the layout settings of the options chain?
Click on the adjust icon in the upper right corner of the page to access the options settings.
1. In the expiration type, you can set to filter weekly, monthly, and quarterly options.
2. Custom settings such as expiration date display, browsing layout with the same sliding direction can make the options chain display more in line with your browsing habits.
3. In the strike price setting, you can filter to display in-the-money or out-of-the-money options, and choose the number of rows to display.
4. In the data column settings, you can sort and delete the display fields of the options chain, for example, the data that options trading most needs to pay attention to such as volume, open interest, and implied volatility. You can adjust them to the front for easier viewing.
5. The rise and fall ratio and current price line can help you determine the options price, and you can choose to show or hide them.
By turning on the switch for non-standard options, the list will be expanded to show non-standard options.
The above is an introduction to the basic operations of options chain. If you want to learn more about options trading, come to the futubull education now~
