StockFetcher Forums · General Discussion · Max Pain = Put/Call ratios and OI<< 1 2 >>Post Follow-up
karennma
6,831 posts
msg #89643
Ignore karennma
3/15/2010 10:54:03 PM

The question is, what will the market have to do this week (options expiration) to enable the MAXIMUM amount of people to LOSE money ... ?
That's the name of the game.
Read and Enjoy!
http://leavittbrothers.com/blog/?p=2808

abelincoln
126 posts
msg #89715
Ignore abelincoln
3/16/2010 5:35:41 PM

cool share...



abelincoln
126 posts
msg #89716
Ignore abelincoln
3/16/2010 5:36:35 PM

left out an "n"
:|

abelincoln
126 posts
msg #89722
Ignore abelincoln
3/16/2010 6:00:43 PM

how to calculate aggregate premium cost...

straken
469 posts
msg #89728
Ignore straken
modified
3/16/2010 7:57:54 PM

Thats why you should always sell calls ILO buying puts :)

I have noticed a lot of growing OI in the SPY OTM calls though thru mar exp and huge buys on the APR puts starting to come thru. R U Cing this in Livevolpro?



karennma
6,831 posts
msg #89738
Ignore karennma
3/16/2010 10:48:04 PM

Straken:
Yes! That's the first thing I noticed on Livepro.
But, I also noticed it on OptionHouse several months ago when I blew out my account.
The BIG MONEY is made SELLING the options, NOT buying them.
Its' simple .. you sell the option, the stock moves against the buyer, you keep the premium, game over!
That's why the phrase "unusually high call volume" is so misleading to a novice.
Some dummy will go BUY the calls, not realizing, (without a scanner) that the "high call volume" represent calls sold.


karennma
6,831 posts
msg #89742
Ignore karennma
3/16/2010 11:26:37 PM

abelincoln
- abelincoln 3/16/2010 5:35:41 PM
cool share...
============================================================

abe:
I've got something really hot to show you.
Problem is, I just don't know how to post screenshots.
I got as far as putting the jpeg file on my desktop, but I don't know how to post it here.
Anyway ...
If you go to LiveVol, you can see it yourself.
Just enter the stock name, i.e., BAC
Then click options. You can see what options were bot and sold the last few minutes of trading.
Click "Stats".
You'll see Calls sold on the bid, Puts sold on the bid
Calls bought on the ask and puts bought on the ask.
Open Interest ratio 1:1.
Yadda, yadda.
Honestly, it's too much info. for an old blind bat like me.
But you might enjoy it.
:>)





abelincoln
126 posts
msg #89766
Ignore abelincoln
3/17/2010 9:28:57 AM

thankz

abelincoln
126 posts
msg #89771
Ignore abelincoln
3/17/2010 9:52:32 AM

The BIG MONEY sells the options cause that's the way to squeeze dollars out of the equities under management that by law they must keep invested according to their stated investment objectives...

Not totally sure as the exactness of this, however if an investor/fund etc., has excess of 100 million dollars then they have to be registered and/or regulated, not sure if that's their money or if they have other peoples money...in some fashion the law requires that, that money be invested and stay invested in order to qualify for whatever fund classification status...blah blah blah

so how does a fund manager use all those goodies for self or friends...sell tons of options and keep the change...and of course there's no way that fund manager can allow all those shares under management to be delivered...



karennma
6,831 posts
msg #89777
Ignore karennma
3/17/2010 10:46:41 AM

abelincoln
- abelincoln 3/17/2010 9:52:32 AM
...sell tons of options and keep the change...and of course there's no way that fund manager can allow all those shares under management to be delivered...
========================================

THAT'S the name of the game! "SELL the options and keep the change".
Works well as long as your position is correct.
But G*d help you if you're wrong and have to "deliver" the shares.



StockFetcher Forums · General Discussion · Max Pain = Put/Call ratios and OI<< 1 2 >>Post Follow-up

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