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Finding Stock with the Most Liquid Options Chains (Monthly/YTD/etc, just not Daily)


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Finding Stock with the Most Liquid Options Chains (Monthly/YTD/etc, just not Daily)

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  #1 (permalink)
 Bermudan Option 
Market Wizard
Chicago, Illinois
 
Experience: Beginner
Platform: TradingView
Broker: ThinkOrSwim
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Hey yall,

I trade stock charts but I leverage my positions with options. One thing I like knowing beforehand analyzing a chart is whether it has a liquid options chain.

Currently, my brokerage allows me to filter potential stock on multiple criteria. The two work-arounds I have been using to avoid illiquid chains are:
  1. Whether the option chain has a strike that has a penny-wide spread
  2. Whether the option chain has weekly options available

...My reasoning being that every liquid option chain fits these criteria for most strikes. However there are a decent amount of illiquid chains that also fit this criteria (ie: one strike is liquid and the rest all have an open interest below 1,000)

If I could get the top 100/200/300 most liquid options chains, that would likely be more efficient.

Does anyone have a resource or an idea where I can find this information?

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  #2 (permalink)
 shodson 
OC, California, USA
 
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The most liquid stocks usually also have the most liquid options. I define liquid based on dollar-volume, which is avg(price * volume), because that measures how much money is flowing in and out of them each day. The ones that trade the most money are the most liquid.

Not many have penny-wide bid/ask spreads, so if that is your criteria, a small number of stocks/ETFs would qualify.

Also, you can download a list of companies that have weekly options at the CBOE's website.

Here are the 100 of the most liquid stocks/ETFs over the past few days today, in order of liquidity...

SPY
TSLA
QQQ
AMD
AMZN
AAPL
MRNA
IWM
MSFT
NVDA
BABA
FB
TQQQ
AMC
GOOGL
SQ
BNTX
TLT
PFE
GOOG
EEM
BA
NIO
LQD
BAC
PYPL
MU
XLF
IVV
SHOP
HYG
V
ROKU
VOO
NVAX
HOOD
DIS
JPM
EFA
XLE
NFLX
XLI
GE
CRM
COIN
XLV
WMT
DIA
UBER
C
FXI
MA
UPST
WFC
XOM
GM
PLTR
ABNB
AMAT
ZM
SNOW
QCOM
EWZ
HD
CVX
INTC
SNAP
SE
CRWD
XLK
TSM
SMH
JNJ
TGT
UNH
PG
IEF
GS
XLU
PINS
TNA
CSCO
ADI
SAVA
LOW
BIDU
VXX
LRCX
JD
F
ADBE
CAT
MS
XLP
UVXY
VTI
JNK
T
PDD
COST

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 Bermudan Option 
Market Wizard
Chicago, Illinois
 
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shodson View Post
The most liquid stocks usually also have the most liquid options. I define liquid based on dollar-volume, which is avg(price * volume), because that measures how much money is flowing in and out of them each day. The ones that trade the most money are the most liquid.

Not many have penny-wide bid/ask spreads, so if that is your criteria, a small number of stocks/ETFs would qualify.

Also, you can download a list of companies that have weekly options at the CBOE's website.

Here are the 100 of the most liquid stocks/ETFs over the past few days today, in order of liquidity...

[...]

Thank you for this! I like the idea of Price x Volume as stock liquidity which is likely strongly correlated to options liquidity.I can find this out easily in my scanner, filter the top X amount of stock and just load the list of instruments to my watchlist. Much appreciated!

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 TradeTheLevel 
Rockland, ME
 
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This is what I did and I use it allot with my options trading with a different broker.

Sign up for tasty trade but do not deposit money. They will give you a delayed data platform for free. Inside that platform they have updated watch lists of the most liquid options. They Also have watchlists that are the most in focus etc. Great tool!

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