Discussion in 'Options' started by akivak, Aug 9, 2010.
How can I know if the option is bought or sold?
Was the transaction at the buy or sell price?
You mean bid or ask? This is exactly what I want to find out. If it is at ask, then it was bought, and the opposite.
I see big activity on ID Sep options - 10 calls and 7.5 puts.
Looking at Sep 10 calls volume and open interest, I see it is exactly half the volume of puts. Looks like someone is buying 10 calls for 80 cents and financing them by selling double amount of Sep 7.5 puts for 40 cents.
I'm trying to confirm that this is the case. If it is, someone is betting big time on ID price above $10 and he also probably knows it is not going below 7.5 any time soon.
What are you talking about? For every option that is bought, there must be seller and vice versa... am I missing something here?
If you want to buy an option and there is no seller, the market maker has to provide liquidity sell it to you. So if the transaction was at ask or close to it, that means it was bought and vice versa.
you can watch the chart and study which time you can sell or buy, you can get the references in the old thread in this forum
How is it related to my question?
It is not related to your question..
You want to know the same thing that I am trying to find out. You want to look at the opt interst and be able to discern what amount of that is purchased and what amount of that is sold.
Or.. which calls are bought on the offer.. and which are sold on the ask..
I know optionmonster has proprietary software that does this.. that "heatseeker" stuff. I have not yet found out how to distinguish these myself.
I will let you know if I do.. and vice versa.
Here are my opinions:
1. Read live_vol's threads- he often references if he feels there has been a "buy" or a "sell" - he has legit reasons for his beliefs and you might learn something if you study his threads.
2. Why does it really matter to you in most cases? If someone buys 1000 calls, does that mean you want to? Maybe, but you shouldn't assume if you just knew if a trade was a buy or a sell all of the sudden that it would do you much good.
3. I see this argument/question all the time in the penny stock world as well - every trade has a buyer and a seller, but sometimes trades that go through at the bid are considered "sells" and trades at the ask are considered "buys".
If they took money out of your account, it was a buy
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