Options Control U.S. Stocks

đź”® đź”® The Options Market Is The Crystal Ball That Tells You Where US Stocks Are Headed
The S&P has risen 25% in 2021 and last week notched its 66th record close of the year, more new highs than in any year since 1995
Earlier this month, total equity options volume reached 56.5 million contracts—the second-highest total ever, behind the 59.2 million contracts traded on Jan. 27 at the height of the meme-stock craze
Retail Traders tend to prefer lower-priced options. That is apparent in a preference for cheaper—and more speculative—options with short maturities. About 40% of options trading volume on individual stocks is in contracts expiring within a week and 54% within two weeks
Calls give holders the right to buy a stock at a fixed price for a period, and amount to a bullish bet. Puts, which allow investors to sell a stock at a fixed price, are bearish bets. Each contract covers 100 shares of stock
Equity call volume topped 37 million contracts on Nov. 5, just shy of the record 39 million contracts on Jan. 27, after averaging 20 million to 25 million contracts daily from March through September. Reflecting the bull market, call volume on individual stocks is regularly running at double the rate of put volume
Big changes in many stocks often happen on the opening trade, as investors incorporate news occurring since the prior session, such as earnings reports
Historically, nearly all of the net change in the S&P 500 index has occurred with the opening trade. Since 1993, the index is up 745% overnight, based on the opening trade, and down about 9% during the trading day. So far this year, the returns have been more balanced, with the index up 13.7% overnight and 9.9% cumulatively during the day
When call option volume surges, if you’re a momentum-based trader, whether you’re institutional, retail, or quantitative, you’re going to look at it, and you’re more likely to buy the stock
Watch Our Video To Profit From Options And Dark Pool Data: https://youtu.be/MhDq4M63a2Y

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