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Option Volume as an Indicator

Hi traders and thanks for checking out my blog

This is a short video I put together the other day showing a setup using option volume as an indicator. I ended up missing the trade because of an uninvited distraction. I would normaly like to see the volume a little heavier, but it was still enough to use as a trade signal. With that being said, things can and do change quickly in the markets so make sure these techniques line up with your other analysis.

I was wrong in the video about the market continuing down. It eventually rallied up to new highs as we know now. But, I've said it before, even the supposedly "smart money" makes bad moves occasionally because not all smart money is "In the know". Anyway, the fall was still strong enough to make lots of money from the move. Had a REAL sell-off been anticipated. The option volume would have been even heavier.

Well, I hope you guys enjoy the video and I hope you can take something from it.

Happy Trading