Option Trading with Professionals

Why is Option Data Important?
Pattern Recognition: Historical data helps spot repeatable patterns across expiry dates, strikes, or underlyings.

Volatility Analysis: IV and HV trends assist in detecting overpriced or underpriced options.

Liquidity Study: OI and Volume data help identify where smart money is moving.

Strategy Development: Backtesting using past data validates the strength of a strategy before real capital is deployed.

Market Sentiment Gauge: Changes in IV, OI, and skew can reflect trader sentiment and possible direction.

🧰 Core Components of an Option Database
A fully functional options database setup typically includes:

1. Options Chain Data
Captures details like Strike Price, Expiry Date, LTP, IV, Bid/Ask Spread, Greeks.

Should be stored with timestamps and unique IDs for reference.

2. Open Interest & Volume History
Time-series data showing how OI and volume evolved intraday and over time.

3. Volatility Surfaces
3D models showing how IV changes with strike and time to maturity.

4. Underlying Asset Data
Historical prices, volume, dividends, splits, news events, and earnings.

5. Event Tags
Earnings announcements, economic reports, corporate actions tagged for context during backtesting.