An Important Piece of the Puzzle

Historical Options Data

It’s very difficult to analyze data without a complete picture of what has transpired. With options, a trade you see today could be part of a much bigger portfolio of trades that have accumulated over weeks or even months. This article highlights the use of Historical Options Data and discusses:

  • Why is Historical Options Data Important?
  • When do I use Historical Options Data?
  • How do I access Historical Options Data?

At the end, there is a great video that ties in Open Interest, Historical Data, and 13F analysis to reach a conclusion. Don't miss it!

Why is Historical Options Data Important?

While today’s options trades offer insight into what’s happening right now, usually that’s only part of the story. Historical Options Data helps you better analyze the situation and often fills in the some of the missing details that led up to today’s trades.

By using Historical Options Data effectively, you’ll increase your confidence when translating the flow to create the “Options Story.”

Lastly, by figuring out what traded in the past, you can draw conclusions to the options activity you see today.

Example

Suppose today’s trade is indecipherable as to whether it was bought or sold. If there is enough Open Interest (greater than the volume), then you can look back at the Historical Options Data to see whether the previous data indicated a buy or a sell.

Historical Options Data Opening vs Closing

 If the options you are analyzing today were sold in the past, then that may give you a stronger indication that today‘s trade was bought back to close.

When do I use Historical Options Data?

You should always consider Historical Options Data when analyzing an options trade. You want to verify what you’re seeing today by understanding how the trade transpired over time. Here are 3 common questions you are likely to think about when analyzing today’s trade: 

  1. Is today’s options activity a continuation of the past?
  2. Is it the same big investor rolling their trade?
  3. Is the investor adding more leverage or taking risk off?

For each of these questions, you must dig into the past to get a clear picture of what is happening today.

But there must be a past to evaluate it, right?

The only way to determine whether there was a “past” in any particular trade is by analyzing the stock’s Open Interest.

Historical Options Data - Open Interest Tool

High levels of Open Interest open the door to the obvious questions:

  • What happened there?
  • When did those options trade?
  • Were those options bought or closed?
  • What did they pay?
  • Where did they think the stock was going?
  • Did those options trade as a spread?
  • Who did that trade?
  • And then why did they do that trade?

The only way to get to the answers to those questions is by analyzing Historical Options Date.

How do I access Historical Options Data?

I’ve made it easy for you to access Historical Options Data using the OptionsGeek tools. 

Just click on the calendar in any of these tools and choose the date that you are looking for:

  • Home
  • UOA
  • Stock
  • New Options Chain
Tools - Process - Historical Options Data

Watch This Video

On the forum, a member asked me to look at GILD for him to help him decipher what, if anything, was going on. Watch this video to see how I start on the Open Interest page and then walk through the Historical Options Data to come up with a few conclusions on how the big institutions are positioned. At the end of the video, I do use some other clues that I think you may find interesting.

Each scenario is different and I’m always drawing from my vast experience to find small clues that can give me a better answer. Over time, as you see me discuss ideas on the Trade Ideas  Forum, you will learn them too.

Calendar

Historical Options Data

It’s very difficult to analyze data without a complete picture of what has transpired. With options, a trade you see today could be part of a much bigger portfolio of trades that have accumulated over weeks or even months. This article highlights the use of Historical Options Data and discusses:

  • Why is Historical Options Data Important?
  • When do I use Historical Options Data?
  • How do I access Historical Options Data?

At the end, there is a great video that ties in Open Interest, Historical Data, and 13F analysis to reach a conclusion. Don't miss it!

Why is Historical Options Data Important?

While today’s options trades offer insight into what’s happening right now, usually that’s only part of the story. Historical Options Data helps you better analyze the situation and often fills in the some of the missing details that led up to today’s trades.

By using Historical Options Data effectively, you’ll increase your confidence when translating the flow to create the “Options Story.”

Lastly, by figuring out what traded in the past, you can draw conclusions to the options activity you see today.

Example 

Suppose today’s trade is indecipherable as to whether it was bought or sold. If there is enough Open Interest (greater than the volume), then you can look back at the Historical Options Data to see whether the previous data indicated a buy or a sell. 

Historical Options Data Opening vs Closing

If the options you are analyzing today were sold in the past, then that may give you a stronger indication that today‘s trade was bought back to close.

When do I use Historical Options Data?

You should always consider Historical Options Data when analyzing an options trade. You want to verify what you’re seeing today by understanding how the trade transpired over time. Here are 3 common questions you are likely to think about when analyzing today’s trade: 

  1. Is today’s options activity a continuation of the past?
  2. Is it the same big investor rolling their trade?
  3. Is the investor adding more leverage or taking risk off?

For each of these questions, you must dig into the past to get a clear picture of what is happening today.

But there must be a past to evaluate it, right?

The only way to determine whether there was a “past” in any particular trade is by analyzing the stock’s Open Interest.

Historical Options Data - Open Interest Tool

High levels of Open Interest open the door to the obvious questions:

  • What happened there?
  • When did those options trade?
  • Were those options bought or closed?
  • What did they pay?
  • Where did they think the stock was going?
  • Did those options trade as a spread?
  • Who did that trade?
  • And then why did they do that trade?

The only way to get to the answers to those questions is by analyzing Historical Options Date.

How do I access Historical Options Data?

I’ve made it easy for you to access Historical Options Data using the OptionsGeek tools. 

Tools - Process - Historical Options Data

Just click on the calendar in any of these tools and choose the date that you are looking for:

  • Home
  • UOA
  • Stock
  • New Options Chain

Watch This Video

On the forum, a member asked me to look at GILD for him to help him decipher what, if anything, was going on.

Take a look.

At the end of the video, I do use some other clues that I think you may find interesting.

Each scenario is different and I’m always drawing from my vast experience to find small clues that can give me a better answer. Over time, as you see me discuss ideas on the Trade Ideas  Forum, you will learn them too.