Volatility User Guide

Volatility User Guide

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›Options Charting

Getting Started

  • Overview
  • Creating Your Account

Options Backtesting

  • Starting Your Backtest
  • Customizing Your Strategy

    • Profit Targets and Stop Losses
    • Implied Volatility Conditions
    • Options Price Conditions
    • Timing and Date Range
    • Holding Periods
    • Technical Indicators
    • Execution and Liquidity Costs
    • Pair with Underlying Shares
    • Earnings Announcements
    • Delta Hedging

    Analyzing Your Results

    • Backtesting Statistics
    • Backtesting Charts
    • Scenario Risk Analysis
    • Strategy Optimization
  • Portfolio Backtesting
  • Backtest Specific Options

Market Screening

  • Volatility Dashboard
  • Macro and Equities Screens
  • Put Writing Screen
  • Covered Call Screen
  • Unusual Options Activity
  • Opportunities Search
  • Correlation Analysis

Options Charting

  • Implied Volatility Charting
  • Volatility Skew Charting
  • Volatility Surface Charting
  • Market Positioning Charting
  • Put/Call Volume Charting

Account Management

  • Settings
  • Transactions
  • Password

Miscellaneous

  • Start Bar

Put/Call Volume Charting

Put/Call Ratio Charts

Put/Call Ratio charts shows the volume of a security's put volume relative to its call volume over time. Traders use these charts to identify times of peak pessimism (when there are predominantly put buyers and scarce call buyers) and times of extreme exuberance (when there are predominantly call buyers and scare put buyers). These charts are often used as contrarian indicators that could signal overbought or oversold levels.

Put/Call Ratio Screenshot

Weekly Options Volume by Delta Exposure

While the Put/Call Ratio chart looks purely at volume metrics, the Weekly Options Volume by Delta Exposure chart aims to incorporate the risk of an options position in addition to the volume. This chart shows the delta-adjusted notional value of puts and calls traded each week in addition to the net delta-adjusted notional across all options. Delta-adjusted notional is calculated as the delta of the option times the underlying's price times the volume of contracts times the number of shares represented by a single options contract.

For example, a trade of 100 contracts of 0.20 delta calls on a stock trading at $100 would represent $200,000 in delta-adjusted notional (100 contracts * 0.20 delta * $100 stock price * 100 shares per contract).

Weekly Options Net Delta Volume Screenshot

← Market Positioning ChartingSettings →
  • Put/Call Ratio Charts
  • Weekly Options Volume by Delta Exposure
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