Day 4: Analysed the stock using options data
$Reddit(RDDT.US$ Moomoo has a feature called Options Analysis which can give some information about the stock. I will just use Open Interest by Strike Price and Volatility Smile to illustrate:
1. Open Interest by Strike Price
We can analyze the PCR ratio (Put-Call Ratio = Put open interest / Call open interest) to potentially evaluate the market sentiment.sibly translate into a higher trading volume. By applying these figures to the Put/Call Ratio (PCR) formula, we arrive at a result of 1.16, indicating that the market's outlook on Reddit future trend is currently unclear.
1. Open Interest by Strike Price
We can analyze the PCR ratio (Put-Call Ratio = Put open interest / Call open interest) to potentially evaluate the market sentiment.sibly translate into a higher trading volume. By applying these figures to the Put/Call Ratio (PCR) formula, we arrive at a result of 1.16, indicating that the market's outlook on Reddit future trend is currently unclear.
2. Volatility Smile
The pattern showed a regular smile which means that the implied volatility of options near the at-the-money strike is the lowest, and it increases towards both ends. It might suggest that the market is neutral on the future trend.
The pattern showed a regular smile which means that the implied volatility of options near the at-the-money strike is the lowest, and it increases towards both ends. It might suggest that the market is neutral on the future trend.
Bottom line
This article is not to encourage anyone to trade options. But the data is an alternative to estimate the share price trend in the future. Having said that if you check the volume, there are not enough options trade to confidently forecast the trend now. It is interesting to note there is Unusual Options Activity of Long Call and Short Call.
This article is not to encourage anyone to trade options. But the data is an alternative to estimate the share price trend in the future. Having said that if you check the volume, there are not enough options trade to confidently forecast the trend now. It is interesting to note there is Unusual Options Activity of Long Call and Short Call.
Disclaimer: The above is not financial advice and for the purpose of education. Please do due diligence (DYODD) if you wish to enter a trade.
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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RayTrade : How is that unusual, just some one opened large vertical spread position
ZnWCOP RayTrade: It depends on your perspective.
I Am 102927471 RayTrade:
2120Dude : Thx, I'll rely more on option analyss.