Option Workshop contains functionality buy exchange tokens display vector parameters of a whole option series in visual form. You can create option theoretical price and volatility chart.
Historical and Implied Volatility
Right-click on the series name. Select the Volatility skew command from the pop-up menu.
- With option signal
- Theoretical price and volatility charts | Documentation · OptionWorkshop
- The Bottom Line There are seven factors or variables that determine the price of an option.
By default, the volatility chart will open. Volatility charts The chart below shows the implied volatility of option prices. The color of the lines indicates the impliced price volatility: — call options Volatility chart line displays data calculated using the current option series' pricing model.
The markers indicate the implied volatility of the best bid and ask prices: — call options — put options Markers are displayed only for the default model.
Theoretical price and volatility charts
The default model consists of two parts — a computation model Black-Scholes or Black and a volatility model. In Optin workshop the volatility values are calculated automatically.
The screenshot shows a chart with implied volatility markers shown only for call options. You can simultaneously display IV curves for all pricing models created for this option series see IV curves of pricing models.
The skew is shown by a dashed line. Theoretical price charts To switch to the option theoretical price charts, click the price button on the toolbar.
The color of the lines indicates: — the theor. The tooltip showing vector parameters at the selected point will appear. IV curves of pricing models You can simultaneously display IV curves for all pricing models created for this option series. In the Models list, check the checkbox in front of the interest model.
Volatility skew setup You can customize the volatility skew: select the color, thickness, line style solid, dashed, dotted, etc. Click the Settings button and select the Configure chart style command.
In the Volatility skew setup form select the color, thickness, line style solid, dashed, dotted, etc.
Historical Volatility Indicator – How to Set it Up and Use
The last set parameters will be applied to the new chart. Scaling and moving You can scale and move the chart in several ways: Mouse wheel — scroll the chart horizontally. To scale into a certain area, hold the right mouse button and select the area.
To return to default size double-click the left mouse button on the chart.
To move the chart, click the left mouse button and hold it pressed while moving the cursor.