This post covers visualizing options market data in Python focusing on implied volatility, open interest, and max pain.
Options traders analyze implied volatility and open interest for market sentiment, liquidity, and price expectations. The Max Pain theory helps predict stock price behavior near expiry.
The code provided loads and cleans options data, calculates key metrics like ATM strike and expected price move, and visualizes open interest and implied volatility.
This analysis requires exporting options data to CSV files, running a Python script for processing, and interpreting charts to understand market activity and sentiment.