He says that he will not take just anyone into this service, implying that he has to turn people away. Hmmm......
It doesn't matter because the two buyers have the same objective . Making money is equivalent to losing less money. John
Yeah, there is an "application" , also... But when I signed up for the regular insideoptions subscription, I was given a free trial to the blog, no forms or other junk to fill out. Also, he gave away a free trial to optionmonster members (membership is free) a few months back.
you have no clue how options work, the buyer could have a volatility play and the seller could have a directional play on. They both could make money with their options.
"He says that he will not take just anyone into this service, implying that he has to turn people away. Hmmm......" Hmmm indeed!! Somehow, I don't see him turning away clients willing to throw cash at him. However, if you're stupid enough to throw cash at a guy who shows up on tv wearing THREE TRADING BADGES (CME, CBOT, CBOE) AT THE SAME TIME, then you deserve what you get. Caveat Emptor!!
You have no clue what John means. He compares two buyers, you compare a buyer and a seller. And he is right: from bearish to neutral = from neutral to bullish.
In order to get some meaningful information, wouldn't be sufficient to see how the open interest changes?
Correct. But the open interest tells you the amount of new positions being opened on that option, i.e., an increase of the open interest on a call tells you that there is an increase of long positions on that derivative and viceversa.
In that case, is it effective to compare open interest (buys) vs volume-open interest (sells), instead of the P-C ratio?