Warm-Up

Options trading may sound enticing when we hear about someone who has made an enormous profit from trading options. But we may feel intimidated and confused when we are viewing an options chain. So, how do you get started?

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Key Takeaways

1. Learn about options chains

2. Set options chains layout as your trading style

3. Know how to read options quotes on an options chain

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What is an Options Chain?

Investors may be overwhelmed by the complex maze of data on the options chain even if they have learned the related course or watched the videos before. An options chain, also known as an options table, is a list that includes all available options contracts. The options chain displays information such as the current quote, trading volume, price change, etc. to help investors analyze each option contract.

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How are Options Chains Organized?

• Strike price and days to the expiration date
• Expiration date and multiplier
• ITM and OTM contracts
• Strategies, calls/puts, and quotes display

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How to Read Options Quotes on the Options Chain

When looking at the options chain, you may see many quotes displayed. Ask price, bid price, last price, open interest, implied volatility, and more. You might wonder what all of these phrases mean.

Investors can utilize the quotes offered to evaluate and analyze a contract. So, if we want to be more knowledgeable and confident before trading options, we must learn how to read the quotes on the options chain.

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Options Chain Settings

No matter what app you use, investors tend to adjust the layout to a format more comfortable to them. So, how do you customize the options chains to fit your trading style? Let’s look!

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Set your own layout

There are six customizable items in the options chain below:

• Strikes numbers: 6, 10, 20, 30, 50, and All. You can select how many strike numbers show on your options chain.
• Deliverables: Standard and non-standard options.
• List Style: List View and Straddle View.
• Expiration Type: Regular, Weeklys, Quarterlys.
• Sort by Strike Price: Ascending and Descending
• Columns: Webull provides over 20+ quotes under options contracts, which allows investors to select and analyze contracts from different quote dimensions. You can choose one of them to display on your chain and change the order of the quotes on the page.

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