Huge volume on C & SPY options...strategies?

I

increasenow

Been researching and noting that C and SPY are consistently #1 and #2 in total daily option volume.

What in the world is the deal with C leading in option volume? Really blowing away all others except SPY in option volume? The underlying C stock hardly ever moves. How are traders making $$ cash trading C options? Because someone is obviously trading them...look forward to the experience and insight of traders trading C...or even SPY...thanks in advance...
 
I am talking about daytrading C options or 1-3 day at most C option trades...not old school "buy and hold" for one month C option trading...
 
Quote from increasenow:
----What in the world is the deal with C leading in option volume?
----The underlying C stock hardly ever moves.
----How are traders making $$ cash trading C options?
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1) Oh God! You're back. :(
2) Stock trading volume and option trading volume go hand-in-hand. :cool:
3) With a cheapy stock such as "C", you're better off to daytrade it instead of its options because they'll move too slowly off the bid/ask. :)
 
Quote from nazzdack:

[3) With a cheapy stock such as "C", you're better off to daytrade it instead of its options because they'll move too slowly off the bid/ask.
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Good point. C is a poor candidate because its intraday volatility is lousy but if a stock is < $5, it's a better trade it than its options.
 
Quote from increasenow:

What in the world is the deal with C leading in option volume?
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There are probably a lot of bag holders hoping to make back the $50 they lost in the '07-08 fall by writing OTM covered calls.

:D :) :p
 
Quote from spindr0:

Good point. C is a poor candidate because its intraday volatility is lousy but if a stock is < $5, it's a better trade it than its options.
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this implies that you got a "fat cash bag $$$" to trade C stock with...it takes less $$ cash trading options to make significant money...
 
Quote from increasenow:

Been researching and noting that C and SPY are consistently #1 and #2 in total daily option volume.

What in the world is the deal with C leading in option volume? Really blowing away all others except SPY in option volume? The underlying C stock hardly ever moves. How are traders making $$ cash trading C options? Because someone is obviously trading them...look forward to the experience and insight of traders trading C...or even SPY...thanks in advance...
More...

Hysterical!!:p :p :p
 
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