Below is a one day chart of the equity only Put/Call ratio as
found in stockstocks.
The numbers do not match the numbers found at the CBOE...I use
the CBOE numbers. As you can see the high price of the day matched
( as close as I can get in time)...with the low put/call raio
of the day, not only is this the low of the day but it is an
extremely low ratio.
10:30 AM Puts/Call 320/574 =
55%
Equity Options
Index Options
Interest Rate Options
Total
Put / Call
Time
Calls
Puts
Total
Calls
Puts
Total
Calls
Puts
Total
Calls
Puts
Total
Ratio
9:00 AM
189410
118577
307987
115733
95364
211097
0
0
0
305143
213941
519084
0.70
9:30 AM
325498
187768
513266
192589
262274
454863
0
0
0
518087
450042
968129
0.87
10:00 AM
438885
261748
700633
294725
388522
683247
0
0
0
733610
650270
1383880
0.89
10:30 AM
574986
320747
895733
391171
494124
885295
0
0
0
966157
814871
1781028
0.84
11:00 AM
651735
382959
1034694
456337
548876
1005213
0
0
0
1108072
931835
2039907
0.84
11:30 AM
727567
431164
1158731
489866
618706
1108572
0
0
0
1217433
1049870
2267303
0.86
10:30 Puts/Calls =
261/438 = 55%….This is an extremely low reading…everyone is buying
Calls
Reason why- Stock closed at 7.21 - Apr 6s closed at 1.30, so
you're only paying .09 premium to the actual tangible
value.
Apr 7s closed at .61 - that's a .40 premium to stock's tangible
value so in reality 6s are cheaper.
Then look at Matt's chart posted tonite. Near term objective is
call it 7.60
As stock moves up more into the money the speculative portion of
the premium will begin to shrink. Since there is so little in the
6s at this point, will probably remain constant whereas the 7's
speculative premium will begin to shrink as it gets more into the
money. As a percentage return you may make a higher return with the
7's, but in absolute terms you may make very little on a move to
7.60. If stock doesn't move very much in next few weeks then you'll
definitely be better off with the 6s.
As far as the 8's go, take the money you'd spend on those and go
to Vegas. Just gambling. Stock would need to move a point just to
break even, but a common mistake that many option traders make,
which is the reason that most of them lose money.
Another option, pun intended, is to buy the 6s and sell the 7's.
This is a spread. You'd need to execute the trade with a
.70differential. So what you would be doing is buying the 6's for
1.30, selling the 7's for 60, net result you're long the 6's for
.70. As long as stock stays above 6.70 you make money but you're
capped at .30 profit as long as stock stays above $7.00. But .30 on
.70 is about 40% in 5-6 weeks. Depending on broker, you may
need to call trading desk if you're uncomfortable trying to execute
yourself. Most will be glad to do. if they aren't change
brokers.
If you want a little more risk but with more upside potential
then you can do same thing using 7's and selling the 8's. This
would lower your effective cost on the 7's to about .40 which still
leaves you more upside potential than the other but definitely
reduces your risk.
These latter 2 ideas are more the base hits as are the in
the money 6 calls versus going for the home run. This how the
professionals trade. Going for the home runs is a sure way to lose
most your money. Forget all the crap you see about making
1000%/week propaganda, unless of course you've got some good inside
info, LOL.
Equity Only Put/Call Ratio
Posted by bboylan on 3rd of Mar 2010 at 07:00 pm
Below is a one day chart of the equity only Put/Call ratio as found in stockstocks.
The numbers do not match the numbers found at the CBOE...I use the CBOE numbers. As you can see the high price of the day matched ( as close as I can get in time)...with the low put/call raio of the day, not only is this the low of the day but it is an extremely low ratio.
10:30 AM Puts/Call 320/574 = 55%
Equity Options
Index Options
Interest Rate Options
Total
Put / Call
Time
Calls
Puts
Total
Calls
Puts
Total
Calls
Puts
Total
Calls
Puts
Total
Ratio
9:00 AM
189410
118577
307987
115733
95364
211097
0
0
0
305143
213941
519084
0.70
9:30 AM
325498
187768
513266
192589
262274
454863
0
0
0
518087
450042
968129
0.87
10:00 AM
438885
261748
700633
294725
388522
683247
0
0
0
733610
650270
1383880
0.89
10:30 AM
574986
320747
895733
391171
494124
885295
0
0
0
966157
814871
1781028
0.84
11:00 AM
651735
382959
1034694
456337
548876
1005213
0
0
0
1108072
931835
2039907
0.84
11:30 AM
727567
431164
1158731
489866
618706
1108572
0
0
0
1217433
1049870
2267303
0.86
10:30 Puts/Calls = 261/438 = 55%….This is an extremely low reading…everyone is buying Calls
11:00 Puts/Calls = 320/574 = 58%
11:30 Puts/Calls = 382/651 = 59%
http://www.cboe.com/data/IntradayVol.aspx
SRS calls
Posted by racerick on 4th of Mar 2010 at 01:05 am
Look at the April 6's.
Reason why- Stock closed at 7.21 - Apr 6s closed at 1.30, so you're only paying .09 premium to the actual tangible value.
Apr 7s closed at .61 - that's a .40 premium to stock's tangible value so in reality 6s are cheaper.
Then look at Matt's chart posted tonite. Near term objective is call it 7.60
As stock moves up more into the money the speculative portion of the premium will begin to shrink. Since there is so little in the 6s at this point, will probably remain constant whereas the 7's speculative premium will begin to shrink as it gets more into the money. As a percentage return you may make a higher return with the 7's, but in absolute terms you may make very little on a move to 7.60. If stock doesn't move very much in next few weeks then you'll definitely be better off with the 6s.
As far as the 8's go, take the money you'd spend on those and go to Vegas. Just gambling. Stock would need to move a point just to break even, but a common mistake that many option traders make, which is the reason that most of them lose money.
Another option, pun intended, is to buy the 6s and sell the 7's. This is a spread. You'd need to execute the trade with a .70differential. So what you would be doing is buying the 6's for 1.30, selling the 7's for 60, net result you're long the 6's for .70. As long as stock stays above 6.70 you make money but you're capped at .30 profit as long as stock stays above $7.00. But .30 on .70 is about 40% in 5-6 weeks. Depending on broker, you may need to call trading desk if you're uncomfortable trying to execute yourself. Most will be glad to do. if they aren't change brokers.
If you want a little more risk but with more upside potential then you can do same thing using 7's and selling the 8's. This would lower your effective cost on the 7's to about .40 which still leaves you more upside potential than the other but definitely reduces your risk.
These latter 2 ideas are more the base hits as are the in the money 6 calls versus going for the home run. This how the professionals trade. Going for the home runs is a sure way to lose most your money. Forget all the crap you see about making 1000%/week propaganda, unless of course you've got some good inside info, LOL.
Hope this helps
SRS Calls
Posted by racerick on 4th of Mar 2010 at 01:08 am
Sorry, hit wrong reply button. reply was in response to piclez'z question on SRS calls