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Unusal Option Activity

Published on June 27, 2007

Unusal Option Activity

June 27, 2007

Usual Unusal 270607Earning season is fast approaching (so is window dressing though), so check this out before it’s too late. There is surely some unusual activity is going on. To make some sense out of the this table, check out two things, OPU ratio (Volume/Open Interest) and the strike price. Farther the strike vs yesterday’s closing, someone is expecting a big move and hence big money on stake. Many times, options are also purchased/sold for completing spreads, so it’s a good idea to check that for the option activity you think worth pursuing further.

Don’t you think it would have been wonderful if you could have spotted NKE yesterday before announcing the results. Humm? Do you smell something fishy in other tickers? Stay tuned.

Profitable trading, OP

4 Comments

  • Avatar 3heart says:

    OP,

    It’s a good approach. If we have the open interest data we could also scan Open interest / one month average interest.

    Which software do you use for scanning the OPU ratio?

    Thanks in advance

    3heart

  • Avatar designcurve says:

    OP,

    What scanner are you using to scan for volume vs. open interest?

    TIA,
    designcurve

  • Avatar OptionPundit says:

    These are manual scans based on several websites that I read thru during the trading day or after. I don’t yet have a auto scan that can deliver me this data real-time. If you know of one, pls do let me know.

  • I have built a scanner that indentifies all types of option activity in realtime as well as 15 min. and daily reports. I am working on building my website to reflect all relevant option news/ info. as well as blogs to post on my site. The meat and potato’s of raesbandits will include all this info as well as a measure of how the flow is intra-day on specific options.

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