Option trade idea on YHOO

[newwurldmn]

Quote from cdcaveman:

That's insane

Especially when 10 of those hours the stock price doesn't move.

 

[cdcaveman]

Do you follow open interest in options for yhoo?

 

[hajimow]

Quote from cdcaveman:

That's insane

I know but what if I tell you that I am extremely successful this way.

 

[hajimow]

Quote from newwurldmn:

Especially when 10 of those hours the stock price doesn't move.

 

[hajimow]

Quote from cdcaveman:

Do you follow open interest in options for yhoo?

Yes I do.

 

[diaoptions]

Quote from hajimow:

Yes I do.

LOL .... And how do YOU benefit from the open interest?

 

[hajimow]

Quote from diaoptions:

LOL .... And how do YOU benefit from the open interest?

Open interest does not tell you much most of the time. Just one crazy rich investor might increase the open interest and give you a false signal. I check open interest and then combine it with other info that I have and make my decisions

 

[cdcaveman]

alot of action at the 16 strike in Aug... check oct call open interest.. theres not many contracts open at the 16 strike in oct... but all the open interest is packed into the 16 strike in Aug.. . what do you think about that!




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[cdcaveman]

well there is a certain stickyness to high open interest strikes especially when volume in the underlying isn't so to high that it ofsets trades by dynamic hedgers

 

[Put_Master]

<<< what do you think about that! >>>

I think... therefore I am.
I also think, unless you know whether the open interest represents mostly buyers or sellers of a call or put, it tells you nothing useful.
Much like this post of mine