This is a spread strategy that involves selling options and buying a greater number of out-of-the-money options. Backspreads are often in a ratio of 1 to-2 or 2-to-3 and most traders use them because they work well when there is an increase in market volatility especially when they think the market is about to move…
$IRBT-Bullish flow detected in iRobot with 5494 calls trading, or 4x the recent avg daily call volume in the name. Shares near $9.47 (1.52) with ATMIV lifting by 12.66 point and 70% of todays call premium trading offer side. The JAN 10th 2025 9.50 Calls are being bought between .50-65 iRobot Corporation is an American technology…
$MTLS-Bullish flow detected in Materialise with 2217 calls trading, or 8x the recent avg daily call volume in the name. Shares near $7.88 (0.79) with ATMIV lifting by 2.18 point and 70% of todays call premium trading offer side. The JAN 17th 7.50 Calls are being bought @ .40-.55 Materialise NV, headquartered in Leuven, Belgium, is…
Options Ratio is basically the number of puts traded divided by the number of calls. It can be applied to an individual stock, a sector, an index, or an entire market. Put/call ratios are generally used in contrary manner. For example, when ratios reach extremely high levels, put buying is unusually high and it could…
Parity is basically a set of rules of equality that exist in the options market. For example, long stock and long puts is the as owning long calls. Parity generally holds, but (all else being equal) puts will often trade at lower prices than calls due to the impact of dividends and interest rates.
These are options contract with no intrinsic value. A Call option is OTM when the strike price is above the current market price. A Put option is out-of-the-money when their strike price is below the current market price of the current market price. You should also check out In The Money Options & At the…
