diff --git a/Algorithm/QCAlgorithm.cs b/Algorithm/QCAlgorithm.cs
index daf195a7a1e1..75f20e4a9158 100644
--- a/Algorithm/QCAlgorithm.cs
+++ b/Algorithm/QCAlgorithm.cs
@@ -107,6 +107,7 @@ public partial class QCAlgorithm : MarshalByRefObject, IAlgorithm
         private bool _tagsLimitReachedLogSent;
         private bool _tagsCollectionTruncatedLogSent;
         private bool _hasShownDailyConsolidationWarning;
+        private bool _optionContractUnderlyingResolutionWarningSent;
         private bool _indexOptionTickerAsUnderlyingWarningSent;
         private DateTime _start;
         private DateTime _startDate;   //Default start and end dates.
@@ -2454,6 +2455,15 @@ public Option AddOptionContract(Symbol symbol, Resolution? resolution = null, bo
                 }
             }
 
+            var optionResolution = resolution ?? UniverseSettings.Resolution;
+            var underlyingResolution = underlyingConfigs.GetHighestResolution();
+            if (underlyingResolution > optionResolution && !_optionContractUnderlyingResolutionWarningSent)
+            {
+                Debug($"Warning: {Messages.QCAlgorithm.AddOptionContractUnderlyingResolution(
+                    symbol, optionResolution, underlying, underlyingResolution)}");
+                _optionContractUnderlyingResolutionWarningSent = true;
+            }
+
             var configs = SubscriptionManager.SubscriptionDataConfigService.Add(symbol, resolution, fillForward, extendedMarketHours,
                 dataNormalizationMode: DataNormalizationMode.Raw);
             var option = (Option)Securities.CreateSecurity(symbol, configs, leverage, underlying: underlyingSecurity);
diff --git a/Common/Messages/Messages.Algorithm.cs b/Common/Messages/Messages.Algorithm.cs
index 288a0197cbcc..a5a13abd79a9 100644
--- a/Common/Messages/Messages.Algorithm.cs
+++ b/Common/Messages/Messages.Algorithm.cs
@@ -99,6 +99,18 @@ public static string AddDataInvalidPyObjectType(string repr)
                 return $"{AlgorithmPrefix()}.{FormatCode("AddData")}(): the first argument must be a custom data type (a Python class deriving from {FormatCode("PythonData")} or a CLR {FormatCode("BaseData")} type), but received {repr}. " +
                     $"To subscribe to built-in asset classes use, for example, {FormatCode("AddEquity")} or {FormatCode("AddCrypto")}.";
             }
+
+            /// <summary>
+            /// Returns a warning message saying an option uses a finer resolution than its underlying
+            /// </summary>
+            [MethodImpl(MethodImplOptions.AggressiveInlining)]
+            public static string AddOptionContractUnderlyingResolution(global::QuantConnect.Symbol option, Resolution optionResolution,
+                global::QuantConnect.Symbol underlying, Resolution underlyingResolution)
+            {
+                return $"{AlgorithmPrefix()}.{FormatCode("AddOptionContract")}(): option contract {option} uses {optionResolution} resolution, " +
+                    $"which is finer than its underlying {underlying} subscription at {underlyingResolution} resolution. " +
+                    $"Add the underlying at {optionResolution} resolution or finer before adding the option contract so its implied volatility and Greeks use a current underlying price.";
+            }
         }
 
         /// <summary>
diff --git a/Tests/Algorithm/AlgorithmAddDataTests.cs b/Tests/Algorithm/AlgorithmAddDataTests.cs
index d4834147b4aa..49b904627af2 100644
--- a/Tests/Algorithm/AlgorithmAddDataTests.cs
+++ b/Tests/Algorithm/AlgorithmAddDataTests.cs
@@ -724,6 +724,57 @@ public void AddOptionContractWithDelistedUnderlyingThrows(SecurityType underlyin
             Assert.IsTrue(exception.Message.Contains("is delisted"), $"Unexpected exception message: {exception.Message}");
         }
 
+        [TestCase(Resolution.Daily, Resolution.Minute, true)]
+        [TestCase(Resolution.Hour, Resolution.Minute, true)]
+        [TestCase(Resolution.Minute, Resolution.Minute, false)]
+        [TestCase(Resolution.Second, Resolution.Minute, false)]
+        public void AddOptionContractWarnsForCoarseUnderlyingResolution(
+            Resolution underlyingResolution, Resolution optionResolution, bool shouldWarn)
+        {
+            var algorithm = Algorithm();
+            var underlying = algorithm.AddEquity("SPY", underlyingResolution).Symbol;
+            var option = Symbol.CreateOption(underlying, Market.USA, OptionStyle.American, OptionRight.Call,
+                100m, new DateTime(2027, 1, 15));
+
+            Assert.DoesNotThrow(() => algorithm.AddOptionContract(option, optionResolution));
+
+            var warnings = algorithm.DebugMessages.Where(message => message.Contains("finer than its underlying")).ToList();
+            Assert.AreEqual(shouldWarn ? 1 : 0, warnings.Count);
+            if (shouldWarn)
+            {
+                StringAssert.Contains($"Add the underlying at {optionResolution} resolution or finer", warnings.Single());
+            }
+        }
+
+        [Test]
+        public void AddOptionContractUsesHighestAvailableUnderlyingResolution()
+        {
+            var algorithm = Algorithm();
+            var underlying = algorithm.AddEquity("SPY", Resolution.Daily).Symbol;
+            algorithm.AddEquity("SPY", Resolution.Minute);
+            var option = Symbol.CreateOption(underlying, Market.USA, OptionStyle.American, OptionRight.Call,
+                100m, new DateTime(2027, 1, 15));
+
+            Assert.DoesNotThrow(() => algorithm.AddOptionContract(option, Resolution.Minute));
+        }
+
+        [Test]
+        public void AddOptionContractWarnsOnceForCoarseUnderlyingResolution()
+        {
+            var algorithm = Algorithm();
+            algorithm.UniverseSettings.Resolution = Resolution.Minute;
+            var underlying = algorithm.AddEquity("SPY", Resolution.Daily).Symbol;
+            var firstOption = Symbol.CreateOption(underlying, Market.USA, OptionStyle.American, OptionRight.Call,
+                100m, new DateTime(2027, 1, 15));
+            var secondOption = Symbol.CreateOption(underlying, Market.USA, OptionStyle.American, OptionRight.Put,
+                105m, new DateTime(2027, 1, 15));
+
+            Assert.DoesNotThrow(() => algorithm.AddOptionContract(firstOption));
+            Assert.DoesNotThrow(() => algorithm.AddOptionContract(secondOption));
+
+            Assert.AreEqual(1, algorithm.DebugMessages.Count(message => message.Contains("finer than its underlying")));
+        }
+
         private static SubscriptionDataConfig GetMatchingSubscription(QCAlgorithm algorithm, Symbol symbol, Type type)
         {
             // find a subscription matchin the requested type with a higher resolution than requested