![]() ![]() These trades are made because the underlying asset value is expected to change dramatically in the future, and the buyer or seller can take advantage of a greater profit margin. This occurs when the underlying price is under the strike price on a call option, or above the strike price on a put option. It is important to consider time value because it represents the difference between the strike price and the value of the underlying asset.Ĭontracts with a strike price far from the underlying price are also considered unusual because they are defined as being "out of the money". Additional time until a contract expires generally increases the potential for it to grow its time value and reach its strike price. a buyer finding a seller, or a seller finding a buyer).Īnother indicator of unusual options activity is the trading of a contract with an expiration date in the distant future. In other words, open interest represents the quantity of contracts that individual parties have written but not yet found a counterparty for (i.e. Open interest is the number of unsettled contracts that have been traded but not yet closed by either counterparty. Volume refers to the total number of contracts traded over a given time period when discussing options market activity. Explore unusual options, options flow, dark pools, short activity, and stock activity on The intraday analyst page for all option specifics. Sentiment: BEARISH Option Type: SWEEP Trade Type: CALL. ![]() After the option alert, the stock price moved down to 8.68. Happy Trading Trades of The Day Research Team. On Friday, shares of AMC Entertainment (NYSE:AMC) saw unusual options activity. As always, depending on your risk appetite, do remember to set a stop-loss for the options trade to avoid significant losses. 28 put options on AMC for 7.00 or better. Extraordinarily large volume (compared to historical averages) is one indication of unusual options market activity. The idea is to analyze unusual options activity, identify an interesting smart money trade. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |