Options Data: Best Options Datasets & Databases

What is Options Data?

Options data providers collect specific data points that can later be used to determine price movements over time. These price changes in the stock market help investors and brokers decide which stocks might be ideal to sell or buy at any given point in time. With a handful of options data available to access, such as call options and put options; the data is used to help make the best decision for the broker. There are different indicators that can be used in options datasets to determine the stock market direction. The standard indicator is the Put-Call Ratio (PCR). This has been used for a long time and works by dividing the number of traded put options by the number of traded call options. Due to its simplicity, it is one of the most common ratios used by brokers and investors to assess whether to invest in a market or stock.

How is Options Data collected?

Options data is collected through a databank. There are usually caches that hold this information and then place it into a database each time the specific information is uploaded to an online program or app. Data collected by databanks can then be broken down and analyzed. This is important when it comes to preparing options data insights because the raw data itself cannot give indicators about the market direction and so would be useless for brokers and investors.

These programs then save and compile the data into one mainstream app that can be used later by brokers. Think how busy brokers are, and therefore how useful it is to them to have all the necessary information in one place! Options data is also sorted based on who uses the information and where exactly it comes from. This is so it can be distributed accurately to the right professionals who request options data based on the specific stocks and bonds offered on the stock exchange.

How does Python collect options data?

As a programming language, Python can be used to collect and download financial options data. This is attained by the use of a special algorithm package referred to as Yahoo_fin package which comes with a module called options. This module allows users to scrape option chains and receive option expiration dates. The Yahoo_fin package provides the basis for Python 3 programming language and works in such a way that it scrapes historical options price data, in addition to providing current information on market caps, dividend yields, and identifying which options exhibits the highlight of exchanges.

It can also tell you key details like options expiration dates. This is important because unlike shares, options cannot be held forever and come with an expiration date (the final day the option can be traded before it settles to its final value). Investors want to invest in options which are in-the-money (ITM) as these are the ones that will prove profitable for them, compared to options which are out-of-the-money (OTM).

This options data is scraped from sites such as NASDAQ, primarily because they contain the most up-to-date market information which is what brokers are looking for. Real-time data is combined with historical options data to create a much more comprehensive insight into the current state of the market and the best investment options for brokers and investors.

What are the attributes of Options Data?

Options data comes with various attributes that make it useful. These attributes include, but are not limited to: stocks, quotes, numbers, price points, issues with prices, and market statistics. There are often additional attributes that are added depending on the specific use of the data being collected and where it is being collected from. For example: options data for traders would include the stock prices and fluctuations. This then helps them make a better buying or selling decision based on the price points for that particular stock or bond.

What is an underlying in an Options Dataset?

For any given options dataset, an underlying option security refers to a stock, index, bond, currency, or commodity upon which an given option’s intrinsic value is founded. Underlying security in an options dataset is the foundation component of how the option is valued in the financial markets. It is from this underlying aspect that options are often described as derivatives because they derive their value based on the performance or price action of an underlying security.

Because options price is derived from the price of the underlying security or asset, any price movements in the underlying security will then have a resultant effect on the pricing of the options which are based upon it. Traders use options to either bet on or against the future price movements of the underlying option security. Options can be used in combination to refine an investor’s strategy to meet specific needs. From this, they can have highly customized risk management which means they can reduce the potential for loss.

What is Options Data used for?

The options data that is collected can be used by stock brokers and traders who are looking to change or optimize their trading strategies. They can use this information as a guide to make trades in the future, by creating predictive models and charts. The data can show how the future value of specific stocks may change. Since the stock and bond market is constantly changing, the data collected specifically from this information source is compliled and used for brokers to generate alpha and reduce their losses.

Options datasets work by providing meaningful insights into the movement of the underlying security. But, as options data points tend to show a very high level of volatility in a very short period of time, this data needs to be correctly analyzed with the right indicators to provide worthwhile insights. When used correctly, options data intelligence can provide key pointers to investors as to the best stocks to invest in and because of this experienced traders and investors have been using these datasets for a long time in both short-term trading and long-term investments.

How can a user assess the quality of Options Data?

The quality of options data is assessed through the information that is presented. Accuracy can be can be verified by comparing the stock prices in one dataset to another source, and checking whether they’re consistent. Use reputable stock exchange data sources, like Bloomberg, to benchmark your dataset against their expert market calculations. Watching for inconsistencies in any dataset is important to get the best and most accurate data collected.

Due to the constant fluctuation in the pricing of options on the stock market, it is important to find options datasets and APIs which have the most up-to-date data that is constantly updated with the latest options prices. Without this, traders would find it hard to base their investing decisions around the latest intelligence. However, a good quality options database will also include historical options insights. By having a historical overview of the different options prices, traders can best evaluate the state of the market and determine where are the best places for them to invest their money or buy stocks.

Where can I get historical Options Data?

Historical options data is readily available via data marketplaces and has a variety of different uses. Listed on data marketplaces such as Datarade’s are top financial markets data providers where a user/investor can buy options data online and download it in their chosen format, such as CSV or SQL. At Datarade, users can compare the cost of acquiring historical options data, the historical lookback of a dataset, and compare the best data vendors and their expertise in the financial markets.

The uses of historical options data are manifold. Primarily, historical options data insights are used to determine how options’ prices have changed over time. These give key indicators about the current state of the market in comparison to previously and can tell investors whether now is the best time to buy options or whether it would be better to hold off for the time being. Data analysts also use historical options data to study how options prices have progressed over a certain period of time. This can be useful when advising investors and brokers about market conditions and where they should ideally place their money for the most success.

Types of Options Data

There are different types of options data available to buy.

End-of-day data
End-of-day options data are datasets which are updated at the end of the market day. These datasets contain information about all the options on the market in at the end of that specific market day and are useful when looking at options intelligence as a whole but do not provide real-time insights and analytics.

Intraday data
Intraday options data are datasets which are updated over the course of the working day at regular and routine intervals. These intervals change depending on the dataset you have accessed, for example you could have a dataset which provides updated options data every 5 minutes.

What are the attributes of Intraday Options Data?

Intraday options data is useful because it clearly shows the high and lows in price that a given option has achieved over the course of that working day. For traders this is important because they can use these intraday options databases to make decisions when it comes to making multiple trades during a regular session. Intraday options data intelligence is also useful because it gives a variety of options prices, from the opening price on one given day to the closing price as well as the highest price and lowest price reached by the option. An intraday options dataset also tells investors the number of options that were bought or sold over the course of that particular day.

Real-time data
Another type of options data which is available to buy is real-time data. These databases provide real-time options data intelligence and can be useful for people looking to know the most up-to-date options prices. Each different type of options data has many uses for traders and brokers depending on their personal needs. They can use these options insights and intelligence to ensure they are making the very best trading decisions and with the hope of generating as much profit as possible. The stock and options market are both notoriously volatile, so it is understandable that traders would want to be as well informed when it comes to their trading decisions as possible.

Each different type of options data has many uses for traders and brokers depending on their personal needs. They can use these options insights and intelligence to ensure they are making the very best trading decisions and with the hope of generating as much profit as possible. The stock and options market are both notoriously volatile, so it is understandable that traders would want to be as well informed when it comes to their trading decisions as possible.

Where can I get the best intraday Options Data?

What really defines the best intraday options data? The answer to this question boils down to what the user of such data needs. However, as a standard measure, the best intraday options data providers provide feeds of data that are available either in API feeds, or CSV format via Microsoft Excel or Google Sheets.

Often, intraday options data is used to map options prices using charts. These charts are then used by traders to decide when to buy or sell their options based on the potential it has for profit. Since option prices do not fluctuate as much or as often as the price of the underlying stock, brokers and traders use these intraday prices to figure out when the option is mispriced compared to its underlying stock and therefore has the chance to generate profits.

Furthermore, the best providers should be able to provide intraday options data that is highly customizable according to the user’s historical and geographical criteria. By shopping for data via a marketplace like Datarade, investors can be sure that they are purchasing intraday options data from the best providers by comparing reviews and samples from global data vendors.

What is an Options Data mine?

An options data mine is a database system that provides comprehensive options data analysis of daily reports for users to buy and sort through options contracts. With access to detailed historical analysis, data subscription members to these databases can keep track of historical options data behavior on any listed stock option contract. Together with real-time daily data reports and historical data, an options data mine consists of a stock alert system that informs users of probable price changes in some popular stock.

Options data mining is used to analyze options data to extract information and patterns which can be useful for traders and brokers when it comes to making investment and market decisions. Data mining can bring to light patterns and associations which might not be immediately obvious when looking at raw options data. It can also be used to construct analytical models and in market prediction. Think about it this way – if you had to try and guess how the stock market would look and act tomorrow, wouldn’t you want the best tools at your disposal? That’s where an options data mine comes into play.

Through an options data mine, users have access to:

• Daily reports of notable options
• A quick preview of options price and volume
• Deep historical price analysis
• Options data mine watch lists.

What is an Options Data mine used for?

Huge amounts of money trade hands weekly in the stock options market, just like with all other stock markets. Publicly traded companies, like Apple and Google, see huge price swings on a day-to-day basis. Traders and analysts therefore use options data mines to find historical stock options data which tracks these prices swings. With a data mine, the fluctuations in options price is exposed and can then be studied and by better understanding trends in price swings, traders can make the most well-informed investment decisions to generate the highest profits.

Historical options data gives traders the best and most valuable tools to find attractive stock options to buy when combined with options volume data. The historical options data is filtered to highlight only the most notable and prominent stock options from a wider list of available options. Daily volume analysis can be used to let traders and analysts focus on specific options contracts at the right time. All of this is used to point brokers and traders in the direction of the options stock which is likely to generate the greatest profits and so can be essential for anyone trading on the stock market.

How does an Options calculator work?

An options calculator is an advanced algorithm that is provided by options data vendors as a quick means to generate fair value prices for any options on futures contracts. Powered by third party providers, an options calculator works by means of using volatility data and historical trading day prices. Volatility data is the degree of variation in an option trading price series over a period of time. While historic volatility data measures past market and options prices the course of trading history, on the other hand implied volatility looks forward in time. This is derived from the going market price of a market-traded derivative – in this case, options! It provides users with customizable ways to input parameters such as option style, price of the underlying instrument, strike, expiration, implied volatility, interest rate and dividends data. Furthermore, users of options calculators are provided with the means to input a stock or options symbol leading to the database automatically populating all the required fields with ease, precision and speed.

When using an options calculator, you can either input what-if scenarios, or pre-load end of day data for certain selected stocks depending on your personal use case of the calculator. The adaptability of these options calculators means traders can adapt the information they use to their trading strategy. A bullish trader will use different inputs and get different options insights than a bearish trader because of the difference in the way they make trades.

How are Options Datasets priced?

Like many different datasets, the amount of information available in an options dataset or API can vary widely depending on the use case of the dataset. Options databases which contain a lot of historical options data will have a higher price than other options datasets due to the vast amount of data they contain. Additionally, because the collection of options data and preparation of options datasets can require a lot of analysis, it is likely that options datasets will cost more than datasets which contain raw data alone. When it comes to using options data, traders want the most complete and well-analyzed information available and for this raw options data needs to be deeply analyzed to highlight areas, like less obvious trends and patterns.

What are the sources of Options Data?

The best providers and vendors of options data are available to connect with via the Datarade platform, where users can shop for options data, simply by searching on our data marketplace. There are different types of options data available to buy depending on your personal use case and business needs.

How can you assess the quality of an Options Dataset?

As there is a wide variety of information that can be included in an options dataset, there are different factors you should look for to assess the quality. Firstly, you should ensure that the options data provided suits your business’ needs – i.e. consider if you need historical options data or if real-time insights are more useful for you. You should also look to see how the data has been analyzed to make sure that the data you will receive will be suitable for your uses. The easiest way to be sure you will get the highest quality options data is to ask the data provider for a data sample before purchasing. Then, you can try the data out and evaluate its uses before you make a financial investment in the intelligence.

Additionally, always make sure to read the data provider’s reviews before you make any data purchases. Certifying that the data provider’s information is complete and up-to-date as promised is the best way to ensure that you will be receiving the highest quality options data for your business’ needs.

Where can I buy Options Data?

Data providers and vendors listed on Datarade sell Options Data products and samples. Popular Options Data products and datasets available on our platform are US Options Data Packages for Trading, Research, Education & Sentiment by Intrinio, EDI Derivative Corporate Actions Data Global (DerivActions) - 10 years history by Exchange Data International, and Fundamental data for international equities by Twelve Data by Twelve Data.

How can I get Options Data?

You can get Options Data via a range of delivery methods - the right one for you depends on your use case. For example, historical Options Data is usually available to download in bulk and delivered using an S3 bucket. On the other hand, if your use case is time-critical, you can buy real-time Options Data APIs, feeds and streams to download the most up-to-date intelligence.