Charts When Scalping Options

[littletamla]

Hi,

I have a question and would like some clarity. Being new to trading and learning and whole new and different language, I was wondering if I need a different chart for options or can I use the same chart that I use when I trade stocks?

I am only asking because I noticed that when I sent the option code to the Active Trade ladders, it changes the formation of the chart and I would like to know if I can continue to use the same chart I use for my stocks for options?

I hope this makes sense.

TIA

 

[rad14733]

@littletamla While you could use the same Chart for both Stocks and Options, a separate Chart tends to work better as it can be customized for Options instead of Stocks...

One thing to keep in mind is that as an Option gets OTM it would skew some of the indicators that benefit from the continual data flow for Stocks... On top of that, you might want a different set of indicators and Chart Labels for Option contracts...

Because I primarily scalp SPY Options these days I tend to keep a Chart for the Call I am actively monitoring as well as another identical Chart for the Put I am monitoring... My Chart labels and indicators, few as there may be, are for Option performance... For example, I want to know the current ATR and Delta of each contract... Below is the current Chart layout I am using for Options which is a two panel Chart Grid... Neither the BollingerBands nor VWAP are needed but I like having them... As you can see, I also have a label for the underlying symbols current price... I like having my custom lower OptionDelta indicator for historical purposes, which displays AbsValue() for both Calls and Puts... I also utilize several different OBO Brackets with varying Limit and StopLoss that I can select from, again, based on current market conditions...

All that said, most of my Option scalps are made from a Flexible Grid Chart that displays the underlying on the left and only Active Trader ladders for my preselected Call and Put stacked on the right... The image below shows just one of my scalping layouts... Either of the Option panels can be maximized and a Chart displayed if desired... I like flexibility...

Most of my trading actually happens from my Main Panel on its Flexible Grid... I can update my Call and Put selections at any time from the Option Hacker driven Option Watchlist on the lower left to maintain my desired Price and Delta range for the current market by Right-Clicking on an Option entry and sending it to the corresponding Numbered/Colored Option AT panel... See the image below...

Most of this information has been shared elsewhere in these forums, as well as other setups I have used over the years... Again, scalping SPY Options is my main endeavor and this system works well for that purpose...I hope you find this information helpful...

 

[littletamla]

@littletamla While you could use the same Chart for both Stocks and Options, a separate Chart tends to work better as it can be customized for Options instead of Stocks...

One thing to keep in mind is that as an Option gets OTM it would skew some of the indicators that benefit from the continual data flow for Stocks... On top of that, you might want a different set of indicators and Chart Labels for Option contracts...

Because I primarily scalp SPY Options these days I tend to keep a Chart for the Call I am actively monitoring as well as another identical Chart for the Put I am monitoring... My Chart labels and indicators, few as there may be, are for Option performance... For example, I want to know the current ATR and Delta of each contract... Below is the current Chart layout I am using for Options which is a two panel Chart Grid... Neither the BollingerBands nor VWAP are needed but I like having them... As you can see, I also have a label for the underlying symbols current price... I like having my custom lower OptionDelta indicator for historical purposes, which displays AbsValue() for both Calls and Puts... I also utilize several different OBO Brackets with varying Limit and StopLoss that I can select from, again, based on current market conditions...

View attachment 24661


All that said, most of my Option scalps are made from a Flexible Grid Chart that displays the underlying on the left and only Active Trader ladders for my preselected Call and Put stacked on the right... The image below shows just one of my scalping layouts... Either of the Option panels can be maximized and a Chart displayed if desired... I like flexibility...

View attachment 24662

Most of my trading actually happens from my Main Panel on its Flexible Grid... I can update my Call and Put selections at any time from the Option Hacker driven Option Watchlist on the lower left to maintain my desired Price and Delta range for the current market by Right-Clicking on an Option entry and sending it to the corresponding Numbered/Colored Option AT panel... See the image below...

View attachment 24663

Most of this information has been shared elsewhere in these forums, as well as other setups I have used over the years... Again, scalping SPY Options is my main endeavor and this system works well for that purpose...I hope you find this information helpful...

Yes, this definitely does help! Thank you. Would you mind sharing your layouts with me or direct me in the direction I need to go.


Thanks