CBOE OPTION CHAINS

You can download a list of of all options and LEAPS for any option symbol traded on the Chicago Board Options Exchange (CBOE) directly into OMC with no additional formatting or manipulation. You can completely ignore the section on the CBOE site below the download box titled "Suggestions for Importing this data to Microsoft Excel." All the formatting is performed automatically in OMC. You get the data from http://www.cboe.com/delayedquote/QuoteTableDownload.aspx. Change your browser settings to "Always ask where to save files."

CBOE-download

The CBOE strictly prohibits automated downloads but there is no limit to the number of option chains you can download using the above manual method. We suggest creating a special directory for these CBOE downloads so you can quickly navigate to it from OMC. When prompted in your browser rename the file from the generic QuoteData.dat to the symbol name (i.e. SPY.dat).

This is the underlying screen you see when you open an option chain file.

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Implied Volatility Rank

A small form pops up over the option chain that you can use to calculate the current Implied Volatility Rank or Implied Volatility Relative (IVR) if this information is not available on your broker's platform. If IVR information is not available on your broker platform you are using the wrong broker for options trading. This information is critical for successful options trading.

Implied volatility on any symbol for the past 52 weeks is not supplied by OMC. The backfill implied volatility data you need for this calculation is available from the CBOE and from iVolatility.com. The menu path on iVolatility.com is Services & Tools --> Analysis Services --> Basic Options.

We suggest getting your IVR information directly from dough.com. The IV Percentile calculation is already done. It's the most convenient source. It's reliable, and it's free. You can also approximate current implied volatility within the program by using the midprice of the At-The-Money (ATM) call and put for the expiration cycle of interest. See IV Approximation in the Calculators menu.

IVR

Sorting the List

You can sort the entire list on any column by clicking on the column header that you want sorted.  Sort by Open Interest to determine if the underlying has sufficient liquidity in the cycles you want to trade. Sort by Implied Volatility to check for volatility spikes ahead of earnings and other binary events. Sort by strikes, by delta, by days-to-expiration.

You probably will not realize how useful this sorting feature is until you try to accomplish the same task on your broker’s platform, which by practical necessity presents option chain data by individual expiration cycles. This download gives you an overview of all options and LEAPS currently being traded for that symbol. We do not display individual options without a bid at the time of the download.

You can Drag n’ Drop from the option chain into the Strategy Preview and several other forms and specialized options calculators available in Options Master Chartist.


Option Strategy Preview

Drag n’ Drop from the option chain list into the Option Strategy Preview screen to get critical information about the proposed trade.This Strategy Preview shows only basic credit and debit spread trades. Do not be put off by this limitation. These basic strategies are the components of every other option spread trade, no matter how complicated.

position-review


Select a radio button in the Strategy Selection panel to see:

Buying Power: An estimate of the margin required for the proposed trade. Your actual margin requirements are determined by your broker and may differ from the estimates shown. Buying Power does not apply to IRA and other non-margin accounts which require fully cash secured naked calls and puts.

POP: Probability of Profit. The statistical probability that this trade will expire with at least one penny in profit.

Max Gain. The maximum amount that this trade can make in profit. Commissions and fees are not included so the actual amount would be less.

Breakeven: The stock price at expiration at which this trade would breakeven for zero gain or loss without regard to commissions and fees.

Max Loss: The maximum amount that this trade could lose without regard to commissions and fees. UNDF means “undefined” and applies mostly to naked calls.


Big Profit Card

The Big Profit Card shows profit or loss at expiration for combinations of up to four separate call and/or put options. You make all the entries. The column labeled CREDIT in the example is where you enter the money you collected for the trade (a credit) or the money you paid out for the trade (a debit). Debit entries must be preceded by a minus sign, i.e. "-.09", without the parenthesis. The label CREDIT will change to DEBIT and the background color will change when a debit entry is made.

Use the STOCK entry box and the Increment radio buttons to see a range of stock prices and the resultant options prices at expiration for the trade.

The Profit Card is very useful for understanding the internal dynamics of complex option trades likes Straddles, Strangles, Iron Condors, Jade Lizards or Ratio Spreads. The Big Profit Card is one of the most useful and most used items in OMC. It's a wonder that broker platforms do not have anything similar.

profit_card