Evaluate Result Of 18 Sep 2023 Most Active Daily Options Trade Data
This is a follow up to yesterday (18 Sep 2023) where I did an evaluation of the most active daily options.
In this article I will be sharing how each of these stocks that I have filtered fare and what should we be looking out if we plan to use options daily data to help in our trading plan.
18 Sep 2023 Active Daily Options vs Stock Trade
Highest Number of Contracts
If we look at the highest number of contracts recorded for 18 Sep 2023, the top 3 stocks did not far too bad, only $Tesla Motors(TSLA)$ did not make an upside. But using number of contracts does not really tell much about the story.
Tesla announced price cuts which is not well received by the market as this could hinder their earnings and this has happen before. Hope Tesla really look into their pricing strategy again.
%Calls Higher Than %Puts
We should be looking at %Calls that are higher than Puts, for this category, $Palantir Technologies Inc.(PLTR)$ and Alphabet (GOOGL) did not have a remarkable increase but it is still positive though.
Alibaba has a slight decrease, overall, I find this category pretty useful.
%Puts Higher Than %Calls
As for the %Puts higher than %Calls category, we have seen $Nikola Corporation(NKLA)$ make a more than 30% surge after it named former president of General Motors' global connected consumer group, as its chief operating officer.
I find this one example of how using Options data to determine the sentiment of the stocks to be a bit risky. With a sudden positive news, it can send the options Puts contract in dismay.
Overall, I still find this category useful with Ford (F) and Bank Of America (BAC) went down with bearish sentiment seen from %Puts higher than %Calls by more than 7%.
From what I have gathered from evaluating Most Active Daily Options for market sentiment, it is pretty useful, but it should not be used solely.
We will still have to use our own trading plan, may it be fundamental or technical analysis. This options data evaluation should be used to complement our own trading strategy.
I will be gathering data for more daily options data and see if the evaluation does work out well.
Appreciate if you could share your thoughts in the comment section whether you think understanding daily active options data would be a good way to complement our trading strategy?
Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.
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