As someone new to options trading, I have begun exploring the capabilities of Interactive Brokers to enhance my investment strategy. I currently hold 100 shares of National Grid PLC (NG.) through another broker, acquired at an earlier date. My objective is to generate the highest possible premium by selling call options against these shares, continuing...
Category: interactive broker tutorials
Understanding Put/Call Volume (P/C Vlm) for Options Trading on Interactive Brokers
In this article, I’ll break down the concept of P/C Vlm (Put/Call Volume) in a way that’s easy for beginners to understand. Since the screenshot I’m working with doesn’t provide a specific number for this metric, I’ll explore a range of possible values and explain what they mean for trading National Grid PLC (NG) options....
Understanding IV Rank and IV Percentile for Options Trading on Interactive Brokers
If you’re new to Interactive Brokers (IB) and options trading, you might have come across terms like IV Rank and IV Percentile on the platform and wondered what they mean. Don’t worry—this article is here to help! We’ll use a real example from National Grid PLC (NG), a stock on the London Stock Exchange, to...
Understanding Options Historical Volatility on Interactive Brokers: A Beginner’s Guide
For beginners navigating the Interactive Brokers platform, the options page can feel overwhelming, especially with terms like Implied Volatility (IV) and Historical Volatility (Hist Vol). This guide uses a sample screenshot of National Grid PLC’s options data to explain these concepts simply, helping new traders understand how they affect option prices and what to look...
What Is Implied Volatility (IV Last)? A Guide for New Investors
If you’re new to options trading and exploring platforms like Interactive Brokers, you might notice a term called “IV Last” in the options chain for stocks like National Grid PLC. In the screenshot, it shows 18.8% for National Grid’s options. This number, implied volatility (IV), can seem confusing, but it’s a key concept for understanding...
Understanding Options Volume
If you’re new to options trading on platforms like Interactive Brokers, you might come across terms and figures in an options chain that seem confusing at first. One such term is “options volume,” often abbreviated as “Opt Vlm.” In the screenshot of National Grid PLC (NG.) options on Interactive Brokers, you’ll notice that “Opt Vlm”...
Understanding Decimal Placement in Financial Markets
You can see that here the price is given as 971.20, and in pennies and pounds, it’s actually 9.71. This can be confusing for beginners. Is the Decimal Always Moved by Two Places in This Manner? No, the decimal placement isn’t always moved by two places, and it’s not exclusive to Interactive Brokers, options,...
Option Chains for Beginners – Interactive Brokers Example
Understanding National Grid PLC Options Chain on Interactive Brokers Overview of the Screenshot (Note: a full size of the screenshot appears at the end of the article) This screenshot shows an options chain for National Grid PLC, a company listed on the London Stock Exchange (LSE), as displayed on the Interactive Brokers platform. This isn’t...
Navigating Market Data Subscriptions on Interactive Brokers: A Beginner’s Guide
If you’ve found yourself puzzled by missing real-time quotes or uncertain about potential charges, on Interactive Brokers platform you’re not alone. Why Can’t I See Real-Time Prices? Imagine this: you’re eager to check the latest option prices, but instead of real-time data, you’re met with blanks or delayed information. This scenario often arises because, by...