volume

[met1989]

hey if i look at a the volume of a option contract can that give a clue what ppl believe the trend is ?

 

[Doobs789]

say you can see trend...how do you use that info?

 

[destriero]

hey if i look at a the volume of a option contract can that give a clue what ppl believe the trend is ?

Yes. If more calls than puts trade at a strik it mean that the stock is going upp.

 

[met1989]

Yes. If more calls than puts trade at a strik it mean that the stock is going upp.

thanks

 

[ETJ]

When the forum is done picking on you - there is a lot of noise in pure volume, but some color from opening/closing. part of a spread or tied to stock. OPRA captures this info and depending on your data source you may or may not have the ability to see the trade conditions. It's kind of like reading tea leaves and when you add them to your overriding reason for the examination. For example, a lot of tied to stock trades should encourage you to look at the implied because you may be seeing folks buying or selling single name volatility.
No one piece of raw data is usually definitive, but add it to whatever else you are looking it and it may help.

 

[destriero]

When the forum is done picking on you - there is a lot of noise in pure volume, but some color from opening/closing. part of a spread or tied to stock. OPRA captures this info and depending on your data source you may or may not have the ability to see the trade conditions. It's kind of like reading tea leaves and when you add them to your overriding reason for the examination. For example, a lot of tied to stock trades should encourage you to look at the implied because you may be seeing folks buying or selling single name volatility.
No one piece of raw data is usually definitive, but add it to whatever else you are looking it and it may help.

100% confirmation bias. thanks.

 

[murray t turtle]

say you can see trend...how do you use that info?

%%
Buy/average cost a cash uptrend like QQQ, SPY/ bull market uptrend; never buy GE,TSLA= except to cover shorts LOL-true. NOT a prediction+ GE, TSLA may lose value.

When put call ratio is very HI like 1.48 in 2015 could be a bear signal-it was then. IBD prints that ratio under its charts, but i seldom look @ it, since so many do

 

[TradingDemystified]

It's kind of like reading tea leaves and when you add them to your overriding reason for the examination. For example, a lot of tied to stock trades should encourage you to look at the implied because you may be seeing folks buying or selling single name volatility.

Volume, OI, etc are useless as any indication of anything (other than obviously liquidity) because you don't know whether a certain trade is a stand-alone or part of a strategy or hedge, etc.

 

[ironchef]

Volume, OI, etc are useless as any indication of anything (other than obviously liquidity) because you don't know whether a certain trade is a stand-alone or part of a strategy or hedge, etc.

Except when you see an OI of 24 and volume of 1 you know they were retail trades likely stand alone.

 

[TradingDemystified]

Except when you see an OI of 24 and volume of 1 you know they were retail trades likely stand alone.

?
Would you assume there is a market tell (direction-wise) based on retail trades?