![]() Options are "bullish" when a call is purchased at/near ask price or a put is sold at/near bid price. These trades are made with the expectation that the value of the underlying asset is going to change dramatically in the future, and buyers and sellers will benefit from a greater profit margin. "Out of the money" contracts occur when the underlying price is under the strike price on a call option, or above the strike price on a put option. Time value is important in this context because it represents the difference between the strike price and the value of the underlying asset.Ĭontracts that are "out of the money" are also indicative of unusual options activity. Generally, additional time until a contract expires increases the potential for it to reach its strike price and grow its time value. The trading of a contract with an expiration date in the distant future is another sign of unusual activity. a buyer finding a seller, or a seller finding a buyer). In other words, open interest represents the quantity of contracts that individual parties have written but not yet found a counterparty for (i.e. Open interest is the number of unsettled contracts that have been traded but not yet closed by either counterparty. The volume of options activity refers to the number of contracts traded over a given time period. One way options market activity can be considered unusual is when volume is exceptionally higher than its historical average. Following the unusual option alert, the stock price moved up to $52.43. ![]() Shares of AMC Entertainment AMC saw some unusual options activity on Friday.
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