RE:RE:RE:judging from today's price...prabhatmalik wrote: What does significant volume in options indicate? Please explain.
Thanks
I meant significant volume relative to other types of options. Nearly all March "calls" were purchased at or above $25, with the most volume at $26 and the most open interest at $27. That's very bullish because option buyers expected the price to rise in the very short term. Tomorrow will probably prove them right.
On the other hand, you can look at "puts" which are typically purchased either to short or hedge/insure a position. There are 10x less open interests there. Whenever there's much more calls than puts, it's a good indicator of the expected direction of a stock.
If you saw the opposite like we did before and during last year's correction, it could be wise to consider selling or hedging your position. In this case the weather is clear and the forecast is sunny.