Hi there, I am having good results screening for stocks that are about to explode or at lest have a significant move either up or down. I am evaluating using a straddle or a strangle and although I know theoretically options I never really trade them. I understand option volume and open interests are important but at the moment of scanning I cannot use these parameters. I can use however volume of the stock. Obviously the one that perform better (I.e. larger moves) are the one with less volume and higher volatility. So my first question is: what would you suggest as a minimum volume for the stock to be considered to apply a straddle or a strangle? The minimum volume parameter should filter out the stocks that will not be good for option trading. I thank you for your thoughts and advices. Regards Cris
try avg daily option volume of >= 2500 Significance of 2500? None. I just threw out a number. If your scan yields too few/many results, then decrease/increase accordingly.
Thank you Doobs789 I am using Stockcharts and I do not have the option to filter with option volume but just the volume of the stock. thank you
Oh I see. I’m sure there are other free scanners out there that may have some option/vol data. Or, perhaps your front-end/trading platform. There are plenty of paid ones, but a lot are junk.