NexusFi: Find Your Edge


Home Menu

 





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


Discussion in Options

Updated
    1. trending_up 3,728 views
    2. thumb_up 6 thanks given
    3. group 3 followers
    1. forum 3 posts
    2. attach_file 0 attachments




 
Search this Thread

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

  #1 (permalink)
 
Bermudan Option's Avatar
 Bermudan Option 
Chicago, Illinois
1% better Daily
 
Experience: Beginner
Platform: TradingView
Broker: ThinkOrSwim
Trading: Forex, Stock & Options
Posts: 673 since May 2011
Thanks Given: 838
Thanks Received: 471

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?

Visit my NexusFi Trade Journal Started this thread Reply With Quote

Can you help answer these questions
from other members on NexusFi?
Request for MACD with option to use different MAs for fa …
NinjaTrader
NexusFi Journal Challenge - May 2024
Feedback and Announcements
ZombieSqueeze
Platforms and Indicators
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
Retail Trading As An Industry
66 thanks
NexusFi site changelog and issues/problem reporting
46 thanks
Battlestations: Show us your trading desks!
34 thanks
GFIs1 1 DAX trade per day journal
32 thanks
What percentage per day is possible? [Poll]
25 thanks

  #2 (permalink)
 
shodson's Avatar
 shodson 
OC, California, USA
Quantoholic
 
Experience: Advanced
Platform: IB/TWS, NinjaTrader, ToS
Broker: IB, ToS, Kinetick
Trading: stocks, options, futures, VIX
Posts: 1,976 since Jun 2009
Thanks Given: 533
Thanks Received: 3,709

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

Follow me on Twitter Visit my NexusFi Trade Journal Reply With Quote
The following 4 users say Thank You to shodson for this post:
  #3 (permalink)
 
Bermudan Option's Avatar
 Bermudan Option 
Chicago, Illinois
1% better Daily
 
Experience: Beginner
Platform: TradingView
Broker: ThinkOrSwim
Trading: Forex, Stock & Options
Posts: 673 since May 2011
Thanks Given: 838
Thanks Received: 471



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!

Visit my NexusFi Trade Journal Started this thread Reply With Quote
The following user says Thank You to Bermudan Option for this post:
  #4 (permalink)
 
AnvilRob's Avatar
 AnvilRob 
Smithfield, VA
Legendary Options Mando
 
Experience: Advanced
Platform: Tasty Trade, TradingView
Broker: Tasty Trade
Trading: Futures: Everything
Frequency: Daily
Duration: Weeks
Posts: 626 since May 2017
Thanks Given: 339
Thanks Received: 927

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!

Follow me on Twitter Visit my NexusFi Trade Journal Reply With Quote
The following user says Thank You to AnvilRob for this post:





Last Updated on September 19, 2021


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts