TraderEvolution
  • TraderEvolution Guide
  • TraderEvolution for Desktop
    • Windows
      • How to...
      • Getting started
        • System requirements
        • Installation and login
        • General settings
        • Hotkeys
        • Managing columns
        • Workspaces
        • Arranging panels
        • Top menu, Side bar, Info bar, Status bar
        • Panel settings
        • Alerts
        • Symbol & Account lookups
      • Analysis tools
        • Chart
          • Chart overview
          • Chart settings
          • Chart templates
          • Aggregation types overview
          • Cluster chart
          • Profile chart
          • Drawings
            • Drawing basics
            • Long/Short position
            • Fibonacci tools
          • Level ll data on chart
          • Object manager
          • Chart overlay
          • Context menu
          • Dividend payment history
          • Volume analysis
            • Price statistics
            • Volume profile
            • Volume bars
            • Volume dots
            • Bar statistics
            • Time & Sales analysis
            • VWAP+
        • Grid
        • Watchlist
        • Time & Sales
      • Technical indicators
        • Settings
        • Channels
          • BB (Bollinger bands)
          • BBF (Bollinger bands flat)
          • Price channel
          • Keltner channel
          • MAE (Moving average envelope)
        • Moving averages
          • EMA (Exponential moving average)
          • KAMA (Kaufman adaptive moving average)
          • LWMA (Linear weighted moving average)
          • MAS3 (3MASignal)
          • MD (McGinley dynamic)
          • MMA (Modified moving average)
          • PPMA (Pivot point moving average)
          • Regression line
          • SMA (Simple moving average)
          • SMMA (Smoothed moving average)
        • Oscillators
          • AC (Acceleration oscillator)
          • AO (Awesome oscillator)
          • Aroon
          • CCI (Commodity channel index)
          • CMO (Chande momentum oscillator)
          • KRI (Kairi relative index)
          • MACD (Moving average/convergence divergence)
          • Momentum
          • PO (Price oscillator)
          • PPO (Percentage price oscillator)
          • QStick
          • RLW (%R Larry Williams)
          • ROC (Rate of change)
          • RSI (Relative strength index)
          • Stochastic (Stochastic slow)
          • Stochastic RSI
          • TSI (True strength index)
        • Trend
          • ADX (Average directional movement index)
          • Alligator
          • DMI (Directional movement index)
          • ICH (Ichimoku)
          • Pivot point
          • SAR (Parabolic time/price system)
          • SI (Swing index)
          • ZZ (ZigZag)
          • YHL (Yesterday's high low)
        • Volatility
          • ATR (Average true range)
          • HV (Historical volatility)
          • SD (Standard deviation)
        • Volume
          • MFI (Money flow index)
          • OBV (On balance volume)
          • PVI (Positive volume index)
          • RVOL (Relative Volume) & RVOLBS (Relative Volume Beasley Savage)
          • Volume
        • Other
          • Didi index
          • EATR (Envelopes ATR)
      • Trading panels
        • Order entry
          • Position sizing
        • Super DOM
        • Market depth
        • Matrix
        • Scalper
        • Visual trading
        • Option master
          • Overview
          • Option chain
          • Analyzer
          • Volatility lab
      • Account management
        • Working orders
        • Orders history
        • Filled orders
        • Saved orders
        • Close account requests
        • Positions
        • Synthetic instruments
        • Account operations
        • Assets
        • Statement
        • Subscriptions
        • Copy trading
      • Account information
        • Accounts
        • Account statistics
        • Managed account statistics panel
        • Positions balance
        • Currencies exposure
        • Reports
      • Informative panels
        • Gainers/Losers list
        • Market consensus list
        • High/Low list
        • RSS
        • News
        • Video
        • Internal Browser
        • Economic calendar
        • IPO calendar
        • Heat map
        • Dividends calendar
        • Notifications
        • Event log
      • Strategy manager
        • Overview
        • Strategy list
        • Chart section
        • Active positions/orders section
      • Trading ideas
      • MAM system
        • MAM basics
        • Creating MAM group
        • Trading in MAM
      • More
  • TraderEvolution for Mobile
    • Phones
      • Getting started
      • Settings
      • Watchlist
      • Symbol info
      • Chart
      • Technical indicators
        • Settings
        • Channels
          • BBF (Bollinger bands flat)
          • Price channel
          • BB (Bollinger bands)
        • Moving averages
          • SMA (Simple moving average)
          • LWMA (Linear weighted moving average)
          • SMMA (Smoothed moving average)
          • MMA (Modified moving average)
          • EMA (Exponential moving average)
        • Oscillators
          • Stochastic (Stochastic slow)
          • ROC (Rate of change)
          • RSI (Relative strength index)
          • Aroon (Dawn's early light)
          • CMO (Chande momentum oscillator)
          • CCI (Commodity channel index)
          • Momentum
          • MACD (Moving average/convergence divergence)
        • Trend
          • ADX (Average directional index)
          • SAR (Parabolic time/price system)
          • ICH (Ichimoku)
        • Volatility
          • SD (Standard deviation)
          • ATR (Average true range)
        • Volume
          • OBV (On balance volume)
          • MFI (Money flow index)
      • Order entry
        • Visual trading
        • Position sizing
      • Orders
      • Trading ideas
      • Positions
      • Positions balance
      • Assets
      • Market depth
      • Option chain
        • Option strategies
      • Market consensus list
      • Event log
      • Account details
      • Statement
      • MAM summary
      • Alerts
      • My Portfolio
        • Getting started
        • Performance
        • Return
        • Growth
        • Metrics
        • More
      • Video
      • Notifications
      • Auto-invest
      • More
      • Subscriptions
    • Tablets
      • Getting started
      • Settings
      • Watchlist
      • Symbol info
      • Chart
      • Technical indicators
        • Settings
        • Channels
          • BB (Bollinger bands)
          • Price channel
          • BBF (Bollinger bands flat)
        • Moving averages
          • EMA (Exponential moving average)
          • MMA (Modified moving average)
          • SMMA (Smoothed moving average)
          • LWMA (Linear weighted moving average)
          • SMA (Simple moving average)
        • Oscillators
          • MACD (Moving average/convergence divergence)
          • CCI (Commodity channel index)
          • CMO (Chande momentum oscillator)
          • Aroon (Dawn's early light)
          • RSI (Relative strength index)
          • ROC (Rate of change)
          • Stochastic (Stochastic slow)
          • Momentum
        • Trend
          • ICH (Ichimoku)
          • SAR (Parabolic time/price system)
          • ADX (Average directional index)
        • Volatility
          • ATR (Average true range)
          • SD (Standard deviation)
        • Volume
          • MFI (Money flow index)
          • OBV (On balance volume)
          • PVI (Positive volume index)
      • Order entry
        • Visual trading
        • Position sizing
      • Orders
      • Trading ideas
      • Positions
      • Positions balance
      • Assets
      • Market depth
      • Option chain
        • Option strategies
      • Market consensus list
      • Event log
      • Account details
      • Statement
      • MAM summary
      • Alerts
      • Notifications
      • Auto-invest
      • Video
      • Subscriptions
      • My Portfolio
        • Getting started
        • Performance
        • Return
        • Growth
        • Metrics
        • More
      • External links
  • TraderEvolution for Web
    • Getting started
      • System requirements
      • Login screen
      • Explore the app
      • General settings
      • Hotkeys
      • Managing columns
      • Workspaces
      • Arranging panels
      • Top menu and Status bar
      • Alerts
      • Symbol & Account lookups
    • Analysis tools
      • Chart
        • Chart overview
        • Chart settings
        • Drawings
        • Chart overlay
        • Context menu
      • Grid
      • Watchlist
      • Time & Sales
    • Technical indicators
      • Settings
      • Moving average
        • MD (McGinley dynamic)
        • Regression
        • SMMA (Smoothed moving average)
        • PPMA (Pivot point moving average)
        • SMA (Simple moving average)
        • EMA (Exponential moving average)
        • MMA (Modified moving average)
        • LWMA (Linear weighted moving average)
        • Multi EMA
      • Oscillators
        • MACD (Moving average/Convergence divergence)
        • RSI (Relative strength index)
        • PO (Price oscillator)
        • Momentum
        • CCI (Commodity channel index)
        • Aroon
        • KRI (Kairi relative index)
        • PPO (Percentage price oscillator)
        • RLW (%R Larry Williams)
        • ROC (Rate of change)
        • QStick
        • TSI (True strength index)
        • Stochastic (Stochastic slow)
        • RSI Laguerre
      • Channels
        • BB (Bollinger bands)
        • Keltner channel
        • Price channel
        • MAE (Moving average envelope)
      • Volume
        • Volume
        • VWAP (Volume weighted average price)
        • OBV (On balance volume)
      • Trend
        • SI (Swing index)
        • Pivot point
        • Alligator
        • SAR (Parabolic time/price system)
        • Fractals
      • Volatility
        • ATR (Average true range)
        • CMO (Chande momentum oscillator)
        • SD (Standard deviation)
    • Trading panels
      • Market depth
      • Order entry
        • Position sizing
      • Visual trading
      • Option master
        • Overview
        • Option chain
        • Analyzer
        • Volatility lab
    • Account management
      • Working orders
      • Orders history
      • Saved orders
      • Filled orders
      • Close account requests
      • Positions
      • Assets
      • Statement
      • Subscriptions
      • Copy trading
    • Account information
      • Accounts
      • Positions balance
    • Informative panels
      • Event log
      • Notifications
      • Video
      • Internal Browser
    • Trading ideas
    • More
  • EvoCode
    • Getting started
      • About EvoCode
      • Starting EvoCode
      • Creating a new module
      • General settings
    • Dictionary tool
    • Editing panel
      • Source code editing
      • Editing types/Scripts setup
      • Output & Watch
    • Backtesting panel
      • Backtester
      • Statistics
      • Backtesting Types/Setup
      • Running a backtest
      • Working orders & Positions
      • Orders & Positions history
      • Filled orders
      • Logs
      • Saving scripts, importing and exporting script settings
  • Investing
    • Getting started
    • Portfolio
      • Getting started
      • Positions
      • Positions balance
      • Assets
      • Orders
      • Operations
    • Watchlist
      • Chart
      • Info window
      • Option master
        • Option strategies
    • Discover
      • Symbol lookup
      • Thematic lists
      • Top gainers/Top losers
      • High/Low
    • Trading ideas
    • MAM summary
    • Auto-invest
    • Video
    • More
Powered by GitBook
On this page
  • Volatility smile plotting
  • Chart settings menu
  • Chart scaling
  1. TraderEvolution for Web
  2. Trading panels
  3. Option master

Volatility lab

PreviousAnalyzerNextAccount management

Last updated 8 months ago

The Volatility Lab tab provides a graphical representation of implied volatility (IV) values for selected option contracts. It allows users to visualize the volatility "smile" for different option series, helping to analyze market volatility before starting to trade options and has the following view:

Volatility smile plotting

Once a series (or multiple series) is selected, the volatility smile is plotted on the chart based on the following principles:

  • Y-Axis: Represents the IV% (calculated using the Black-Scholes model in the).

  • X-Axis (Basis): The X-axis scale depends on the Basis setting in the panel:

    • Strike price - displays the strike prices on the X-axis.

    • Delta - displays the delta values of the options. The delta values are rounded to the nearest multiple of 5. The range for the delta scale varies based on the selected side.

Plotting Logic:

  • Calls & Puts - the implied volatility is calculated for:

    • Call Strikes OTM (above the current last price).

    • Put Strikes OTM (below the current last price).

    • For ATM (at-the-money) strikes, the arithmetic mean of Call and Put strike IVs is used.

    • These data points are then combined into a single line on the chart.

  • Calls or Puts - the implied volatility for all OTM Call or Put strikes is plotted on the Y-axis, and the values from the selected basis (Strike price or Delta) are plotted on the X-axis.

Chart settings menu

The Settings panel is located to the right of the chart and allows users to control how the volatility smile is plotted. By default, the panel is open, but it can be collapsed by clicking the arrow next to the header.

  1. Side - the drop-down list allows selecting an option side (strikes) on which the "Volatility lab" will be plotted. Available strikes are:

    • Calls & Puts (default);

    • Calls;

    • Puts.

  2. Visible Series - a list of all available series based on the underlying asset selected in the lookup. Each series has:

    • A checkbox (unchecked by default) to select the series for plotting the volatility smile;

    • A color indicator to show the line color for the selected series. Note that the colors are predefined and can't be changed.

Chart scaling

The chart view can be also manipulated with some additional options:

  • Clicking + moving the cursor on any area on the X or Y axis - allows to move on the left/right (X) or up/down (Y) on this area on the X or Y axis;

  • Clicking + scrolling on any area on the X or Y axis - allows to zoom in to and zoom out of this area.

The chart view can be manipulated with the buttons, located in the buttom-right corner of the chart field:

Pressing the buttonallows to zoom out of any random area of the chart;

Pressing the buttonallows to zoom in to any random area of the chart;

Hovering the cursor over a chart’s dot + mouse wheel scrolling - allows zooming in to and zooming out of a chosen dotof any chart;

Clicking + holding + moving the cursor on a random area of the coordinate plane- allows to focus the chart view on this area of the coordinate plane;