Advanced Institutions Option Trading - Part 5

Institutional Tools & Platforms
Bloomberg Terminal / Reuters Eikon: Institutional-grade data

FIX Protocols: For high-frequency option order routing

Quant Models: Statistical arbitrage using Python/R

Option Analytics Engines: Measure IV Skew, Smile, Surface modeling

Institutions don’t just trade options—they engineer risk-managed portfolios using AI and predictive analytics.

Option Chain Analysis for Traders
Option Chain provides a list of all available option contracts for a stock/index.

Key Elements:
Strike Prices

Call & Put Prices

Open Interest (OI)

Volume

Implied Volatility (IV)

Change in OI

Interpretation:
High OI + Rising Price = Strong Trend

IV Surge = High Volatility Expectation

PCR (Put-Call Ratio) = Market Sentiment Indicator

PCR > 1: Bearish sentiment

PCR < 1: Bullish sentiment