My experience in using Unusual options activity
1. What does unusual options activity means? How do you find it?
Unusual options activity occurs when there is significantly higher than average trading volume in an options contract. Unusual options activity can be driven by widespread interest in a stock or by a few large trades placed by institutional traders.
You can find the feature in Moomoo app> Market> Market Monitor
To making it more convenient, you can set notification to the stocks in your watchlist by going to setting.
Unusual options activity occurs when there is significantly higher than average trading volume in an options contract. Unusual options activity can be driven by widespread interest in a stock or by a few large trades placed by institutional traders.
You can find the feature in Moomoo app> Market> Market Monitor
To making it more convenient, you can set notification to the stocks in your watchlist by going to setting.
2. How to effectively leverage information from unusual options activity?
3. Unusual activity and what it means to call or put options?
It depends your investment goal. I don't short sell any stock but will buy options. Unusual options activity is one of the indicators for price trend forecasting. It is not effectively forecast a target price but good enough to predict a price range and if the stock is bullish or bearish.
4. Your trading experience and performance with/without analysing unusual activity?
By analysing unusual activity, my trading is more effective because it will add on to your confidence. Like I said before like technical analysis indicators, the information is not 100% accurate and you need to verify with other indicators, market macro conditions and company's fundamental. Such information may lead you to emotional trading so do beware of panic sell (fear) or FOMO buy (greed).
I tested the features by trading in Moomoo paperfolio and paper options trading and find leveraging the information helps. This one way to practise your 'trading strategy' without having to lose real money.
By analysing unusual activity, my trading is more effective because it will add on to your confidence. Like I said before like technical analysis indicators, the information is not 100% accurate and you need to verify with other indicators, market macro conditions and company's fundamental. Such information may lead you to emotional trading so do beware of panic sell (fear) or FOMO buy (greed).
I tested the features by trading in Moomoo paperfolio and paper options trading and find leveraging the information helps. This one way to practise your 'trading strategy' without having to lose real money.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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I reflected trading experiences by writing journals. My comments are for educational purposes not financial advice.
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hnubc1 : can you give us an example of a trade and how you use unusual options activity? I like to learn but I don't know how to trade using unusual options activity.
ZnWCOP hnubc1: You can go to my homepage and search "unusual options activity". You'll find a few related article shared by me. Unusual options activity can predict price trend but doesn't predict target price accurately. Please use it with cautious and always verify with other indicators and market conditions.
ZnWCOP hnubc1: To view Unusual options activity in moomoo app, go to main page>search for stock ticker e.g Tsla>Options>Unusual activity
The list of UOA will be shown. You can customise the stocks you want to present by choosing watchlist. Hope this will help you.