The 1-10 options buyers loaded up with calls ready to look to the sky next week, to a tune of premium higher than the $ value paid in July.
Watch the sky, because these guys are ready to rock and roll.
OCC
Breakout to new highs
Started by
dcengr
, Sep 29 2007 01:40 PM
3 replies to this topic
#1
Posted 29 September 2007 - 01:40 PM
Qui custodiet ipsos custodes?
#2
Posted 29 September 2007 - 01:58 PM
Thank's for the link. I never knew this data existed!
Being the fast processor of information that I am , I notice that small traders always buy more calls than puts. Hence it's the ratio that matters. Without using a calculator it appears that when "odd lot" p/c's (I looked at dollar value) exceed 3-1 the market is toppy. We're in that zone. I'll spend some time with the data and report back.
Edited by Pabst, 29 September 2007 - 02:00 PM.
Free market's for free men!
#3
Posted 29 September 2007 - 02:06 PM
Thanks for the link. Just for jollys, scroll through the August tables.
#4
Posted 29 September 2007 - 02:10 PM
Your welcome.
I may suggest that you take a look at cumulative $ value going into open buys minus closed buys for both calls and puts.
What I find most interesting is when the position is "against the trend". For instance, one will note that as prices were dropping in August, small speculators kept adding to calls in a BIG way. And vice versa as prices reversed and came off the lows.
This is pure and simple sentiment in that those who are adding to losing positions continue to lose until they hit capitulation.
Qui custodiet ipsos custodes?