Options Software

Discussion in 'General Discussion' started by BearishMan, Sep 22, 2016.

  1. BearishMan

    BearishMan Guest


    I'm a relatively new options trader. I've just started learning about 2nd order Greeks and the volatility curve and how it moves across different strikes. Can you recommend some options software that will let me see the volatility curve by strike? Is there anything intuitive out there to search for the best skew for various strategies?

    I got into options from tastytrade/dough and they show the probabilities based on the price of the underlying and not so much the effects of volatility expansion. Do you have any suggestions of videos to watch for a more holistic approach or at least a strategy to hedge against volatility expansion?

    I'm glad I found this forum. I'm learning a lot already.
  2. Marcas

    Marcas Well-Known Member

    Hi BearishMan,
    I do not think there is software that allows retail trades to effectively use higher order greeks - except gamma ofc. There are some ways to get idea how some of them might look like but my suggestion is, if you are new to options, don't over-complicate and focus on basics of options trading - it doen't matter if you know about Veta, Lambda or Charm if you get killed on execution. I would even say leave Volatility curve alone (for now).
    But if you insist... look for Kevin's Lee video recordings for example, he shared his work here and he has practical approach to it.
    To see Vol curve you can use ThinkOrSwim, OptionsVue, OptionsNetExplorer, LiveVol - most popular, I think.
    To see Vol curve "by stike" easiest is LiveVol - if I understand correctly your question, but you can use other platforms and spreadsheet too.
    Keep in mind that Vol skew will have different values in each software.

    I'm glad that you did find this forum, I'm also learning a lot.
  3. MikeOW

    MikeOW Guest

    Hi Bearishman

    In Option Workshop looking at an options series skew is easy. Simply right click the option series you want in the instruments panel and select volatility skew. You’ll be greeted with this view:

    As you can see, it’s easy to see the puts and calls for each strike. Also you can specify how many strikes to view, or edit out puts & calls with the buttons at the top. Regarding how vol skew is calculated, Maracas is right when he says each piece of software calculates vol skew differently. If you are wondering how we calculate skew, I’d be happy to answer that question for you!

    When you say “is there anything intuitive out there to search for the best skew for various strategies?” I’m unsure what you mean. Perhaps if you tell me a bit more I could help you. At the moment Option Workshop doesn’t have a search functionality based on an options series’ skew.

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