Buy or Sell Volatility?

If you typically use volatility like I do to select option trades, here is a small list of things to watch this week. No technical analysis has been used yet on these stocks, just volatility analysis. These stocks led their respective categories.

Cheap Calls- COF

Cheap Puts- AAPL

Expensive Calls- ISRG

Expensive Puts- DO

Interesting Call Volume- LVS (Market is expecting a takeover, awesome earnings, or favorable news perhaps?)

Interesting Put Volume-DECK (Market is expecting bad earnings, or bad news possibly.)

Interesting Put/Call Volume- NVLS (Very high put volume in relation to call volume, another bad expectation going on)

Jeff,
I know the day is still young, but would you see this as a breakout of a triangle in ATI? I know the earnings are just around the corner but perhaps one to keep and eye on after earnings.

Jeff,

How do you find the options with unusually large volume? Is there a search for these?

Jeff I thought you did not check this information. I remember asking you this on an email.
Alessandra

Jeff,

Have posted an article about the put/call ratio? What exactly do you look and what interpretation it has for you?

How do you place your trades base on volatility?
Thanks,
Alessandra

Anu,

ATI has not really been something I have been watching. The movements look a little weak, and earnings are upcoming.

Alessandra,

Perhaps there was a misunderstanding? Even if I do not check this information, I am sure others do...right? A ton of my archives are about how to use volatility to decide on a strategy.

The last article I wrote on put/call ratio was on the ask the experts tab of the toolbox. I am not sure if I have written about it on the blog. If I had to bet I would say "no."

Jeff

Hey Jeff,
The snowstorms must have let up in Utah for a while, so you're creating your own snowstorm of words today. Thanks for all the postings... always good to bet more info.
LVS seems to have way more open interest in PUTs than CALLs... To me it indicates that the market is expecting some kind of weakness. Am I mis-reading Open Interest? Besides... us Option Addicts are contrarians and would buy on strength if there's more interest in PUTs.
Also, I ran some Fibonacci retracements on Apple's last decline and today it hit the peak AAPL was at back on Jan 10th (or so... my eyes aren't what they used to be) and this level seems to be a bit of support/resistance in the past year. I'm thinking this could be a good bounce play riiiiiigggghhhhhhtttt...... NOW!
Chris and Catherine

Anyone still following CROX for a cup and handle?

Sean M.

Chris&Catherine,

It was call volume that was acting up, not open interest. Hope that helps to clarify.

Jeff

Sean,

I got back in today after the bounce. I'm willing to exit and re-enter every now and then when something looks ripe and CROX had a nice move today, in my opinion.

Thanks Jeff, I went to the new toolbox that is the one available for me and in the Ask the Experts tab, I only have available one question. There is not archive link to look for previous publications.

I would like to read your article on put/call ratio. How do you think I might get it from the site?

Post a Comment
...I'M AN OPTION ADDICT...I'M AN OPTION ADDICT...I'M AN OPTION ADDICT... ...I'M AN OPTION ADDICT...I'M AN OPTION ADDICT...I'M AN OPTION ADDICT...

About me

  • I'm Option Addict
  • From Saratoga Springs, Utah, United States
  • I am a professional trader and an instructor for Investools. I've had relations with the markets for 9 years. Born in Concord, CA, but reside in Saratoga Springs, Utah. Father of THREE, Husband of one.
My profile

Prescriptions Here!

Other stuff

Blogarama - 
The Blog Directory
Directory of 
Finance/Business Blogs Finance 
blogs Top Blogs Finance Blogs - BlogCatalog Blog Directory