Thank you for the compliment "Gotcha". I shared a very abbreviated checklist of what I look for on any trade. I thank Michael J. Fletcher for starting the thread on BABA. We're looking at this as long.
Now to your questions:
Put/Call Ratio: If you know about options, forgive the repetition. This is a simple calculation: divide the put volume by the call volume.
-Calls and puts are options. Options are rights to buy or sell the underlying instrument (in this case stock) at a specified price by a specific time.
-A call option is the right to "buy" the stock at a certain price, by a certain time. Generally speaking, if one buys a call, they're bullish. A put option is the right to "sell" the stock at a certain price, by a certain time. Options can be used to hedge a position. The one who purchases a put is normally bearish. Someone who's has a long position might buy a put to protect a potential profit. One may buy a call to protect themselves on a short position. However, options can be traded individually (together). Some folks trade options exclusively. There are
10 primary strategies. I trade options, primarily to hedge.
Short Interest vs. Float (nickname for shares outstanding):
- #of shares authorized - # shares issued (difference is treasury stock) - #shares held by insiders (and at times institutional ownership is included) = float (outstanding) the number of shares that are available to be traded in the open market.
- short interest. The number of shares sold short/ the number of shares outstanding (float)
here's a
great video that explains it.
These are my definitions and I tried to simplify as best I could.
See you on the boards.
Happy investing and trading!
