Buy or Sell Volatility?
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.
Posted by Anu | 1/22/2007 12:08:00 PM
Jeff,
How do you find the options with unusually large volume? Is there a search for these?
Posted by Anonymous | 1/22/2007 12:32:00 PM
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
Posted by Option Addict | 1/22/2007 01:14:00 PM
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
Posted by Anonymous | 1/22/2007 02:16:00 PM
Anyone still following CROX for a cup and handle?
Sean M.
Posted by Anonymous | 1/22/2007 02:20:00 PM
Chris&Catherine,
It was call volume that was acting up, not open interest. Hope that helps to clarify.
Jeff
Posted by Option Addict | 1/22/2007 03:29:00 PM
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.
Posted by Anonymous | 1/22/2007 04:48:00 PM