Technical analysis in options trading is like zooming in for a closer inspection of the performance of a stock. Basically, you have to look at a lot of charts and graphs and make analyses. There may be patterns in a given stock's performance parameters (such as volume traded) that will give you clues about proper entering and exiting points.

Before you decide to buy or sell options you need to look at the underlying stocks. There are two main technical analysis types: price patterns and indicators.

Price patterns are available to you from your brokerage firm, but detecting indicators requires mathematical and computational tools. Detecting indicators often involves complex calculations and analyses.