Why Not Open High Low Close for Option Prices?

How do I determine monthly, weekly and quarterly options?

Overview

Very often we get requests for open, high, low, close option prices. We understand why people ask for this, because they want to find the trading range for options.

When DeltaNeutral began writing option analysis software, we also began looking for historical data. Some of the data we saw was Open, High, Low, Close data. We did not like what we saw. Unless the option is heavily traded, the numbers do not give an accurate picture of each option’s potential trading range.

For instance the open price is the first traded price. For non-liquid options, the first trade for that option could occur 2 hours after the market opened or 1 minute before the market closes; there is no telling when it occurred. Conversely, the last traded price could have been several hours before the market closes.

The low and high prices might not be near the low or high price of the underlying stock price. So there is no way to tell what the stock was trading at near the open, high, low or last trade of the option.

Below is an example, from a vendor that sells OHLC data, of SPX option quotes from November, 4, 2004, when SPX closed at 1162.00. It appears that only options that had strikes between 1130 and 1190 reflect the true range of SPX. Call options with a strike of 995, which should have a Delta of 1, should obviously have a much broader trading range than zero (open high low close all being the same number). The call strike of 1075, the open and high are equal to each other, and the low and the last are the same. For these obvious reasons, HistoricalOptionData.com does not distribute open, high, low, close data. We feel that it is nearly useless for people who are creating trading systems. The bid and ask price are much more relevant.

Strike	Type	DataDate	Expires 	Open	High	Low	Last	Volume	OpenInterest
700	Call	11/4/2004	11/20/2004	0	0	0	0	0	0
750	Call	11/4/2004	11/20/2004	0	0	0	0	0	0
775	Call	11/4/2004	11/20/2004	0	0	0	0	0	0
800	Call	11/4/2004	11/20/2004	0	0	0	0	0	0
825	Call	11/4/2004	11/20/2004	0	0	0	0	0	0
850	Call	11/4/2004	11/20/2004	0	0	0	0	0	0
875	Call	11/4/2004	11/20/2004	0	0	0	0	0	0
900	Call	11/4/2004	11/20/2004	0	0	0	0	0	0
925	Call	11/4/2004	11/20/2004	0	0	0	0	0	100
950	Call	11/4/2004	11/20/2004	0	0	0	0	0	17
975	Call	11/4/2004	11/20/2004	0	0	0	0	0	909
985	Call	11/4/2004	11/20/2004	0	0	0	0	0	0
995	Call	11/4/2004	11/20/2004	172	172	172	172	3	106
1005	Call	11/4/2004	11/20/2004	159	159	159	159	20	69
1010	Call	11/4/2004	11/20/2004	0	0	0	0	0	0
1015	Call	11/4/2004	11/20/2004	0	0	0	0	0	0
1020	Call	11/4/2004	11/20/2004	0	0	0	0	0	0
1025	Call	11/4/2004	11/20/2004	139.6	139.6	139.6	139.6	4	1491
1040	Call	11/4/2004	11/20/2004	0	0	0	0	0	89
1050	Call	11/4/2004	11/20/2004	115	115	115	115	5	3322
1055	Call	11/4/2004	11/20/2004	111.5	111.5	111.5	111.5	5	120
1060	Call	11/4/2004	11/20/2004	0	0	0	0	0	104
1065	Call	11/4/2004	11/20/2004	0	0	0	0	0	32
1070	Call	11/4/2004	11/20/2004	93	93	93	93	5	1434
1075	Call	11/4/2004	11/20/2004	90	92	90	92	8	8300
1080	Call	11/4/2004	11/20/2004	83.2	86.5	83.2	86.5	500	2538
1085	Call	11/4/2004	11/20/2004	0	0	0	0	0	31
1090	Call	11/4/2004	11/20/2004	75.3	78.5	75.3	78.5	14	2217
1095	Call	11/4/2004	11/20/2004	68.5	68.5	68.4	68.4	750	1945
1100	Call	11/4/2004	11/20/2004	66.8	69.7	62.5	66.5	54	15240
1105	Call	11/4/2004	11/20/2004	60	62	60	62	3	3834
1110	 Call	11/4/2004	11/20/2004	55	59	53	55	85	9807
1115	 Call	11/4/2004	11/20/2004	51	53.5	49	52.5	661	5739
1120	Call	11/4/2004	11/20/2004	46.5	52.4	43.1	48	141	6607
1125	Call	11/4/2004	11/20/2004	39.8	47	39.8	43.5	1041	34223
1130	Call	11/4/2004	11/20/2004	37	41	34	37.8	2783	15423
1135	Call	11/4/2004	11/20/2004	34.1	36.5	31.2	33.4	97	10526
1140	Call	11/4/2004	11/20/2004	29	33.2	27	29.4	456	9816
1145	Call	11/4/2004	11/20/2004	25.3	30	22.2	25	1150	3546
1150	Call	11/4/2004	11/20/2004	21.8	24.7	16.4	21.8	5169	31174
1155	Call	11/4/2004	11/20/2004	18	20	14.6	17.4	250	2101
1160	Call	11/4/2004	11/20/2004	14.8	17.5	10.9	15	2167	15327
1165	Call	11/4/2004	11/20/2004	11.9	14.5	8.8	10.8	2517	9550
1170	Call	11/4/2004	11/20/2004	9.1	11	6.2	8.9	3498	6677
1175	Call	11/4/2004	11/20/2004	6.5	8.7	4.9	6.8	15891	35673
1180	Call	11/4/2004	11/20/2004	4.8	6.5	3.5	5.4	5932	17250
1185	Call	11/4/2004	11/20/2004	2.9	4.8	2.7	3.6	3026	14617
1190	Call	11/4/2004	11/20/2004	1.8	3.5	1.8	2.75	980	0
1195	Call	11/4/2004	11/20/2004	0	0	0	0	0	0
1200	Call	11/4/2004	11/20/2004	1.1	1.7	0.9	1.3	7392	37699
1205	Call	11/4/2004	11/20/2004	0.9	0.9	0.9	0.9	50	0
1210	Call	11/4/2004	11/20/2004	0.75	0.75	0.4	0.4	15	0
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