Explosive options

C

Cris76

Hi there,

I am having good results screening for stocks that are about to explode or at lest have a significant move either up or down.

I am evaluating using a straddle or a strangle and although I know theoretically options I never really trade them.

I understand option volume and open interests are important but at the moment of scanning I cannot use these parameters. I can use however volume of the stock.

Obviously the one that perform better (I.e. larger moves) are the one with less volume and higher volatility.

So my first question is: what would you suggest as a minimum volume for the stock to be considered to apply a straddle or a strangle?

The minimum volume parameter should filter out the stocks that will not be good for option trading.

I thank you for your thoughts and advices.

Regards

Cris
 
try avg daily option volume of >= 2500

Significance of 2500? None. I just threw out a number. If your scan yields too few/many results, then decrease/increase accordingly.
 
Thank you Doobs789

I am using Stockcharts and I do not have the option to filter with option volume but just the volume of the stock.

thank you
 
Oh I see. I’m sure there are other free scanners out there that may have some option/vol data. Or, perhaps your front-end/trading platform. There are plenty of paid ones, but a lot are junk.
 
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