For options traders employing standardized options strategies such as the long straddle or the covered call, using specific Options strategies chains would really cut down the work of calculating the outlay and other specifics of the specific options trading strategy. As you can see above, Options Matrix presents only the bid and ask prices of each option listed without any other information and is therefore the least useful for retail investors so far.
Options chains are tables that outline all the available options of a particular optionable stock and is presented in a few different ways. This tutorial shall cover the different formats of options chains and the kind of information that are presented in them. This enables options traders employing delta neutral options trading strategies or arbitrage strategies to make precise calculations on the position and size of position to take. Due to screen limitation, Options pricers normally presents either call options or put options only.
Such options chains present only the various combination of options for a specific options strategy across various strike prices or expiration dates. As you can see, the options strategies chain presents the net cost of the strategy at various strike prices as well as other information.
It automatically calculates the net effect of putting on the position as well as other useful information so that options traders can make a decision on which spread to take quickly without wasting time on the calculation.
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