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Salvador N. Lara

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  • Option Sellers Beware, Option Premium Is Too Low For Comfort [View article]
    yeah Richard, that's true. Apple, AMZN, GOOG, XOM, all these big names are definitely worth watching because they have such a large effect on the broad indices. XOM and AAPL alone are 2 of the largest S&P500 stocks. Amazons earnings release today will also be a a factor on the broad indexes, as its lower in after hours.

    Earnings days definitely bring a lot of "pump" in implied volatility until after the report.
    Jan 31 08:52 PM | Likes Like |Link to Comment
  • Option Sellers Beware, Option Premium Is Too Low For Comfort [View article]
    ah yes, thanks for sharing. Definitely a good site and resource.
    Jan 31 03:46 PM | Likes Like |Link to Comment
  • Option Sellers Beware, Option Premium Is Too Low For Comfort [View article]
    Personally, I would have to see more than just volume in a particular options contract to call it a leading indicator, but volume greater than open interest and volume significantly greater than than neighboring strikes will definitely be worth noting. Significant volume in the options must be accompanied by the underlying price action to be a leading indicator or a coincident indicator. Otherwise a large volume transaction on a contract can be erased somewhere else in a different transaction or complex option structures may be occurring for example. Other indicators to track include Call to Put ratio, historical vs implied volatility of the underlying asset, tracking of option skew or smile in the implied volatility on a specific underlying assets options, also tracking the volatility of different assets like euro, gold, oil, silver helps since the market tend to be correlated for the past few years.
    Jan 31 03:30 PM | Likes Like |Link to Comment
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