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

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