How To Trade Options on TradingView – The Complete Guide

Table of Contents

While best known for stock and forex charting, TradingView also offers robust tools for options traders. With the right broker connection, traders can analyze options chains, visualize profit/loss, and even place option trades directly through TradingView.

In this guide, we’ll explore how options traders can utilize TradingView for analysis and live options trading. Follow these tips to maximize your options trading experience with TradingView.

Analyzing Options Chains on TradingView

TradingView allows adding options chains for any symbol to chart options strikes, implied volatility, volume, open interest and more.

To analyze options in TradingView:

1. Enter a stock or ETF symbol and go to its overview page

2. Click the “Options” link to open the chain

3. Choose expiration date, call/put and strike range to display

4. Toggle between table view and interactive visual view

5. Add multiple chains to compare across dates and strikes

Studying the chains enables assessing implied volatility, support/resistance strikes, unusual volume, and other dynamics around options flow and sentiment.

Visualizing Profit and Loss Zones

TradingView includes built-in tools for visualizing potential options profits and losses:

1. From the options tab, click “Add Profit & Loss Zones”

2. Enter details like option type, expiration, strikes

3. Edit details to see P/L at different prices

The dynamic zones provide clarity on max gain, loss, and breakeven points for each options position. Use to conceptualize risk-reward scenarios.

Evaluating Options Trades with Payoff Charts

Beyond basic P/L zones, TradingView offers payoff charts showing detailed risk graphs for options positions:

1. Navigate to the Payoff Charts link

2. Input details for the options position

3. Customize parameters to visualize alternate scenarios

4. Add multiple payoff charts to compare positions

The visual graph makes it easy to comprehend options risk/reward tradeoffs and maximize positions.

Using Options Analysis Tools

TradingView has a robust suite of options tools under the Analysis tab:

Options Strategy Builder – Visually build multi-leg options spreads and analyze risk metrics.

Options Backtester – Test options strategies historically to evaluate performance.

Options Calculator – Calculate option prices based on inputs like underlying price, volatility, days to expiration etc.

Options Analytics – Analyze Greek metrics like delta, theta, gamma, vega for position management.

These tools enable in-depth options analysis for discovering and evaluating trades with an edge.

Executing Live Options Trades

Once analysis is complete, TradingView supports live options trading with integrated brokers like:

Robinhood
Webull
tastyworks
Tradier

After connecting your brokerage account, you can trade options through TradingView via:

Trading Panel – One-click trading to buy/sell options at market prices

Orders – Advanced orders for options like limits and stops

Positions – Monitor open options trades and associated orders

As always, exercise prudent risk management using stops and maintaining defined risk per position size.

Best Tradingview tool to trade options Vanguard Warrior Indicator

Developing Options Trading Strategies

The analysis arsenal enables crafting refined options strategies:

Momentum Trades – Use trend direction, volatility analysis, and momentum indicators to time directional trades.

Ross Hooks – Fade extreme intraday moves using out-of-the-money put/call options.

Credit Spreads – Apply probability analysis for high probability spreads selling options.

Calendar Spreads – Use payoff graphs to optimize calendar spread design for non-directional volatility trades.

Earnings Trades – Scan for IV crush potential and optimize risk/reward pre-earnings.

Robust options tools support endless customizable strategies. Backtest for validation before applying strategies with real capital.

The Pros and Cons of Trading Options on TradingView

Pros:

In-depth options analysis and visualizations
Options strategy creation, modeling, and backtesting
Paper trading to practice options trading strategies
Option trade execution via integrated brokerages

Potential Cons:

Analysis limited to visible chain – cannot see “under the hood” market maker activity
Execution costs higher than dedicated options platforms
Advanced options orders and algos not supported
Functionality gaps compared to specialized options platforms

For most individual options traders, TradingView delivers an excellent blend of analysis with execution.

Conclusion on Options Trading with TradingView

Thanks to robust options analysis features and brokerage integrations, TradingView provides a highly capable platform for options traders.

Use the options tools to identify trades, backtest and optimize strategies, execute precision entries and exits, and ultimately maximize profits across any market environment.

While lacking some specialized features, TradingView makes up for it with integrated end-to-end options functionality accessible directly from charts. Options traders can analyze, strategize, test, and trade all from TradingView.