Options are a type of derivative contract that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price by a certain date. Options are a complex financial instrument, but they can be a powerful tool for traders of all experience levels. Check more on demat and trading account here.
TradingView is a powerful charting platform that offers a variety of tools and features for trading options. In this article, we will discuss how to use TradingView to trade options.
Getting started with TradingView options trading
If you are new to TradingView options trading, the first thing you need to do is create an account. Once you have created an account, you can start adding option contracts you want to trade to your watchlist. Check more on demat and trading accounts here.
To add an options contract to your watchlist, simply click the Add Symbol button and enter the options contract’s ticker symbol. You can also add multiple option contracts to your watchlist by clicking the “Add multiple symbols” button.
Once you have added the option contracts you are interested into your watchlist, you can start looking at the charts. To view the chart, simply click on the option contract name in your watchlist. TradingView’s Options Charting Tool
TradingView offers a wide range of options charting tools and indicators. To access these tools, simply click on the “Indicators & Strategies” tab at the top of the chart. Check more on demat and trading accounts here.
Some of the most popular options charting tools and indicators include:
- Greeks: Greeks are a set of mathematical measures used to evaluate the risk and potential return of option contracts. Implied Volatility: Implied volatility is a measure of the expected price movement of the underlying asset. Check more on demat and trading accounts here.
- Option Chain: An option chain is a table that shows all option contracts available for a particular underlying asset. TradingView options trading strategies
There are many different options trading strategies that you can use. Some of the most popular strategies include:
- Buying calls: Buying calls is a bullish strategy that profits when the price of the underlying asset rises.
- Buying puts: Buying puts is a bearish strategy that profits when the price of the underlying asset falls.
- Selling calls: Selling calls is a bearish strategy that profits when the price of the underlying asset falls or stays the same. Check more on demat and trading accounts here.
- Selling puts: Selling puts is a bullish strategy that profits when the price of the underlying asset rises or stays the same. TradingView options order types
TradingView offers a variety of options order types, including:
Market order: A market order is an order to buy or sell an options contract at the best available price. Limit order: A limit order is an order to buy or sell an options contract at a specified price or better. Stop order: A stop order is an order to buy or sell an options contract when the price reaches a specified level. Check more on demat and trading accounts here.
