![]() But it’s nearly impossible to tell just by looking at the options prices. You look at a few different out-of-the-money strikes and wonder: “Is this asking price too high, just right, or undervalued?” Smart question. So you bring up the Trade or Analyze tab on the thinkorswim® platform from TD Ameritrade and expand the Option Chain to find an expiration that works for you. You decide to try and capture some of that upside with an options play. Suppose you spot a stock that you think is poised for an upside breakout. With a price chart, traders can determine if an option is overvalued, undervalued, or fair by comparing current bid and ask prices with the theoretical price or past price movement.The thinkorswim options charting feature lets traders visualize options price movement Determining an options premium’s fair value used to be a major headache for most traders ![]()
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March 2023
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