/biz/ - Business & Finance

>>10460182
heres a better pic of that put/call OI trick, but zoomed out over time. this shit is less important for equities, but VERY important for manipulated commodities. but as we see in pic related, its also very helpful for calling macro moves on the S&P

>>10420276
i do this shit too
i love finding people dumber than me and just inversing them
PROTIP: watch put/call OI and volume, and also put/call IV. works best when zoomed out. bet with the options writers, and bet against the horde of retail buying long options. pic related

>>10420312
youre retarded. long options is always gambling. you can do certain things to minimize your risk, and make it less gamble-y. but its still one of the riskiest bets you can make.

point is, by doing calls on a leveraged inverse ETF, youve opened up a few extra points of risk (the daily reset possibly moving against you, the much larger slippage from spread, and the higher IV baked into the premium). and unfortunately, because SQQQ is only 12 dollars, even a 10% move in it will yield you less delta than if you went with QQQ puts

wanna see something spoopy?

everyone always says theres no correlation between put/call OI ratio, but i say, there is. you just have to factor in that options have expiry. thus, the big moves down or up in p/c OI signal probable big moves around corresponding expiry (just gotta scan for those hi volume put/call writes when they happen and look for something around their expiry). but really, its less the value of the ratio, and more the general trend when compared to historical data. theres less put writers out there in the market because less people are bullish

pretty interesting to look at market sentiment evaporating like this over time.