Put and call options trading volume


Volume put call trading options and


While most options tradinh are familiar with the leverage and flexibility that options dall, not everybody is aware of their value as predictive tools. By tracking the daily and weekly volume of puts and calls in the U.S. stock market, we can gauge the feelings of traders. While a volume of too many put buyers usually signals that a market bottom is nearby, too many call buyers typically indicates a market top is in the making.

The bear market of 2002, however, has changed the critical threshold values for this indicator. The put-call ratio has long been viewed as an indicator of investor sentiment in the markets. Technical traders use the put-call ratio as an indicator of performance and as tradig barometer of the overall market sentiment.

In short, option volume is the number of contracts traded in a security or an entire market during a specific time frame, usually one trading day. It is simply the amount of options that change hands from sellers anv buyers as a measure of activity. Say Jim buys 100 opyions for XYZ Inc. (XYZ) at the October 30 strike. On the same day, Bill buys 200 calls for the same strike and month. Excellent interface. Great support - shoutout to Alex:) Only problem is that the risk exposure (i.e. maximum purchaseable option) is not forthcoming.




Volume put call trading options and

Put and call options trading volume

Put and call options trading volume



Leave a comment