     |
|
|
|
Detailed market commentary at The Market Ticker and Ticker Classics
(The Year 2012 In Review) Donations accepted; we offer GOLD ACCESS for enhanced privileges. T-Shirts, caps, coffee mugs? Click here. BlogTalkRadio - Mondays at 3:30 Central - Yes, TickerGuy has a radio show (kinda)  RSS available
You are not signed on; if you are a visitor please register for a free account!
|
||
| MarketTicker Forums Single Post Display (Show in context) |
User: Not logged on
|
| Top | Login | Control Panel | FAQ | Register | Logout |
| User Info | How to read high volume on a specific option strike?; entered at 2012-05-29 09:40:07 | |||
|
Lamarth Posts: 1225 Registered: 2008-03-15 Sydney 
|
Large volumes in out of the money strikes, especially massively out of the money strikes can mean insider trades. More frequently, however, large volumes in a specific strike tend to be the result of broker trades - i.e. someone says "give me a market on XYZ" and hits up a market maker. Usually the bigger ones are spreads of some description (between strikes, expiries or even between related stocks), but otherwise they may be attempting to protect the risk on a large stock position or speculating due to a trading strategy. Positions of such size trouble the risk desks of both sides - the market maker will try to hedge the risk throughout the market in any way it can find, the market taker hopefully has a plan for the risk taken on. 2012-05-29 09:40:07
| |||