Options Theoretical Question

Quote from Cache Landing:

Actually there is some information you can reasonably assume if you follow the ticker closely. Doesn't really matter in this case though, because the volume I cited was incorrect. The heavy trading actually occurred on the 22. Probably the OP had something to do with that. Since the OP started this thread there has been almost 0 activity.

My personal forecast is that LDK jumps to $60 friday morning.

hope so, there is talk that the audit is done, complete and clean ... but the legal team is going overkill to prepare everything 100% perfect before they release, and they might delay earnings/audit report for this, in which case they might miss my NOV 16 calls sadly, and the december calls are really low volume right now, like 0 volume on what i was interested in today
 
Quote from Cache Landing:

Actually there is some information you can reasonably assume if you follow the ticker closely.

There are no assumptions which will give you a clue as to who initiated the trade and what side they were on or whether they were opening or closing. There is also NO way of know what they did vs. the options. No offense but you can follow the ticker as close as you like.

The rules are such that they can put the stock up vs. the options outside current bid/offer in the stock, as long as the stock has traded at that price during that day. This allows the market to put up options trades ( they have to be within the current markets ) where the initiator of the options trade would appear to be buying on the bid or selling on the offer, since the options are tied to stock.
 
ok, i just got some insider information from China people who have spoken with the CFO, and that the audit report came out CLEAN, as expected. The team of lawyers is working to sort out details and it will be released soon. This is a huge opportunity for anyone IMO...take your own risks and good luck.
LOLOL. Yes, the internet is a wonderful place
 
Quote from xflat2186:

There are no assumptions which will give you a clue as to who initiated the trade and what side they were on or whether they were opening or closing. There is also NO way of know what they did vs. the options. No offense but you can follow the ticker as close as you like.

The rules are such that they can put the stock up vs. the options outside current bid/offer in the stock, as long as the stock has traded at that price during that day. This allows the market to put up options trades ( they have to be within the current markets ) where the initiator of the options trade would appear to be buying on the bid or selling on the offer, since the options are tied to stock.

I'm mostly agreeing with you, but these statements aren't absolute on thinnly traded tickers with few available strikes. When volume is low, big orders become more identifiable, and spread trades MIGHT become more obvious. Reasonable assumptions can be made with market experience through use of volume, open interest, size, etc.

On highly liquid tickers it is essentially impossible to glean any info. And even on thinly traded tickers frequent small orders aren't readable.
 
Quote from xflat2186:

Fair enough ... you "might" be able to.

LOL, in any case, I generally discourage people from using indicators that claim to base signals on options volume. Most (99%) of it is complete nonsense.
 
I agree ... they're not signals. Most of the large institutional volume is tied to stock or options on something else. Much of it is big dispersion business these days. Also all the big stuff gets shopped around before it hits the market
 
Quote from squarepush3r:

hope so, there is talk that the audit is done, complete and clean ... but the legal team is going overkill to prepare everything 100% perfect before they release, and they might delay earnings/audit report for this, in which case they might miss my NOV 16 calls sadly, and the december calls are really low volume right now, like 0 volume on what i was interested in today

You should realize that zero volume in FOTM options and a delayed ER indicate that the opposite of what you are claiming is true. Delaying an ER is generally a bad sign for a company. Few companies delay a good report.
 
Also, i was under the impression that the independant audit had already begun. Several headlines came out today saying it was just commenced. If it isn't well underway, then it will take another month or two, and then another couple months to straighten out the law suits.
 
Quote from Cache Landing:

Also, i was under the impression that the independant audit had already begun. Several headlines came out today saying it was just commenced. If it isn't well underway, then it will take another month or two, and then another couple months to straighten out the law suits.

if you are truly interested, reread the press releases from today and I'll answer any questions that may be remaining.

I know the end results will be good, but my November window is ticking everyday ... i am moving to december now, and trying to partially liquidate Nov at cost or better in the next few weels
 
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