Oh guru's,
Help a newb out, please.
Could someone explain to me what I can divine from OI?
I can understand when a huge number of puts or calls are gathered around a certain strike, that a large sentiment may have developed for that price.
Is it possible to tell what strategy is most likely being used, such as a directional play, credit spread or fly?
A poster on another thread called "my options play" posted this in response to AAPL going down last week...
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Quote from Rob on Business:
How did you figure AAPL was going down this week? It looks so steady. Was the analyst downgrade today expected or not figured at all?
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just a hunch based upon the open interest near the 70 strike and all the front month 75 calls - with a paucity of puts.
also -- over the years -- expiration week (particularly triple witch) has been a very good time for this kind of counter-trend 'surprise ' move - and a surprise downgrade. Of course I don't want to say that there is manipulation of stocks and that the timing of the downgrades right before triple witch was staged--- but it is a rather interesting coincidence that they couldn't wait until Monday to downgrade. Now why would that be?
AAPL is going much lower in January - watch and see-- the Q isn't whether it goes lower-- but rather-- "from what level" it starts it's decline- current levels or higher like say- $80+.
Today they catch another analyst call with MS setting 90 as the "target" - sounds like they want to distribute their stock to suckers late to the party.
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Thanks in advance.
Help a newb out, please.
Could someone explain to me what I can divine from OI?
I can understand when a huge number of puts or calls are gathered around a certain strike, that a large sentiment may have developed for that price.
Is it possible to tell what strategy is most likely being used, such as a directional play, credit spread or fly?
A poster on another thread called "my options play" posted this in response to AAPL going down last week...
--------------------------------------------------------------------------------
Quote from Rob on Business:
How did you figure AAPL was going down this week? It looks so steady. Was the analyst downgrade today expected or not figured at all?
--------------------------------------------------------------------------------
just a hunch based upon the open interest near the 70 strike and all the front month 75 calls - with a paucity of puts.
also -- over the years -- expiration week (particularly triple witch) has been a very good time for this kind of counter-trend 'surprise ' move - and a surprise downgrade. Of course I don't want to say that there is manipulation of stocks and that the timing of the downgrades right before triple witch was staged--- but it is a rather interesting coincidence that they couldn't wait until Monday to downgrade. Now why would that be?
AAPL is going much lower in January - watch and see-- the Q isn't whether it goes lower-- but rather-- "from what level" it starts it's decline- current levels or higher like say- $80+.
Today they catch another analyst call with MS setting 90 as the "target" - sounds like they want to distribute their stock to suckers late to the party.
-----------------------------------------------------------------------------------
Thanks in advance.
