How do you think other people buy options at what time and price?
$Nasdaq Composite Index(.IXIC.US$Yesterday, when talking about Sichuan Jianguo's DWAC, I mentioned the option position ratio, and we can't get off work after the business is done today. By the way, we can talk about the open position and trading volume of the options.
What's the use of knowing these two? Help us to make a good choice of time and price when buying options.
The number of open positions is how many options are still being held after yesterday's close.
Trading volume is the number of options traded on the day.
I set up a breakfast stall to sell breakfast. I bought 100 steamed buns. Today, I sold 80, the turnover is 80, and the number of outstanding positions is 100-80-20.
What's the use of knowing these two? Help us to make a good choice of time and price when buying options.
The number of open positions is how many options are still being held after yesterday's close.
Trading volume is the number of options traded on the day.
I set up a breakfast stall to sell breakfast. I bought 100 steamed buns. Today, I sold 80, the turnover is 80, and the number of outstanding positions is 100-80-20.
How can I refer to it? If I want to make an option, before I buy and leave, I'd better go back and see which maturity date has more open positions in one or two months, because this represents that many people buy and hold options on this date and price, indicating that everyone is generally optimistic about this date and price, which may be what we usually call smart money.
For example, I think NVIDIA Corp has an upward trend, combined with the graph, the target price is about 145. take a glance at the option chain outside 2 weeks (do not buy doomsday! On November 25th, 140,145,150 positions were open, and on December 2nd, 140,145and 150call were the most. The people who bet on 1 were the same as me. Plus 140 is close to the current price, the royalty of 6.95 on the 25th is a little cheaper than the 8.12 on December 2nd, and the combined cost may be considered on November 25th.
For example, I think NVIDIA Corp has an upward trend, combined with the graph, the target price is about 145. take a glance at the option chain outside 2 weeks (do not buy doomsday! On November 25th, 140,145,150 positions were open, and on December 2nd, 140,145and 150call were the most. The people who bet on 1 were the same as me. Plus 140 is close to the current price, the royalty of 6.95 on the 25th is a little cheaper than the 8.12 on December 2nd, and the combined cost may be considered on November 25th.
You can also take a look at the option trading volume and open position data of other underlying stocks as one more reference. However, there are some stock options with little trading volume and even less open positions, such as grab, which is afraid to be folded in hand and is not recommended to play.
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