Option trading question?
1.OPTION VOLUME:
– As a Indicator,wHAT DOES Option Volume says about future price Movements?
– What does High/Low Option volume says?
– When usually High/Low option volume occurs?Can u give some circumsatances at which High/Low Option volume occurs?
2.Volatility:
a. IMPLIED VOLATILITY (IV):
—What does High/Low Implied Volatility (IV) reading says? Does it gives any signals?
—If "Yes" to the above question,Does that IV reading has any correlation with price of stock inorder to Ensure that the
provided signals ( By IV) are not fake.
—At what circumstances Implied Volatility become unusual High/Low?Can you Give some circumstances?
—Does IV provides Buy and sell signal for option trading?Please explain in simple and clearly.
–Does IV provides the direction>?Like is it going to bullish or bearish or sideways?
b. HISTORICAL VOLATILITY (HV) AND IMPLIED VOLATILITY (IV) RELATIONS:
—Is there any rules like HV should be above or below IV ? or any RULES LIKE IV located above HV?
—If "YES" to the above question, what is the signal it provides when HV is located above IV (or)IV located above HV.
–dOES cRossovers of HV and IV provide any signals?
3.LIQUIDITY:
—cAN YOU TELL ME ANY SIMPLE STRATEGY (Other than Volume) to measure the Liquidity of Stock option?
—I hear one friend saying:measuring liquidity from Bid/ask spread…..But his explanation is not making me
understanding….If you really know answer, Please explain to me in simple and clearly….
—does Liquity provides Buy and sell signals? Please explain in simple and clear way.
4.Suggestions:
If you have your own experience of the following for the option trading,please explain to me in simple way.
—Forecasting the direction?Like Bullish or bearish or sideaways?
—Entry and exit signals of option trading
Thank you .
Related Blogs
- What price is your children's future worth?
- » Option Volume Leaders as of 11:00 AM WhatsTrading.com: Objective Real Time Market Intelligence
- Stefen Choy on Defining Using Implied Volatility to Trade FX Options 2 | Options Trading Tutorial
- free tools – Reap the benefits of Stock Options Trading | Missouri Advertising Blog
- Incentive Stock Options Basics – Alternative Minimum Tax and Incentive Stock Options | How To Trade Futures