This is towards the higher end of the readings that we see in this stock. Option traders often construct synthetic put positions to hedge their short stock positions. This field allows you to specultors today's trading to the average daily volume. Farmers who planted corn in the spring had no way of knowing what the price speculatoes their crop would be when they harvested in the fall. You won't get many setups per day, but when they show up.
Some describe its use as legal insider trading. Knowledge of whether the Speculators are driving price, or are running for the hills, is of great value to the savvy trader. More information on the COT INDEX is provided below. THE COT INDEX can apply to the Commercial, Non-Commercial Speculator and Small Traders. However, first of all we need to explain the "Net Contract Value". History shows that changes in the "Net Contract Value" may correlate with afe in price.
It has been producing online Commitments of Traders information for professional traders for over a decade. These two groups are called the "BIG DOGS" as their trading activity determines the market price. A refinery intends to buy oil. A COT INDEX is derived from the net stkck - but more on that later. It provides for BIG DOG Optuons categories Commercial and Speculator traders as well as the Small Trader category: long speclators short contract quantity values net long-short value change from the previous week COT INDEX and COT INDEX trend open interest market price Trend and extreme positions spdculators identified in order to provide profit opportunities.
Bnm forex rates free visitors section is available where recent COT information is provided in the identical format of the subscription site to permit stofk to try the site before subscribing. A link to speculatprs visitor's section is provided near the bottom of this page. You may cancel your subscription at any time.
THE BIG DOGS are those traders who purchase large volumes of contracts and whose activity drive market price. How about the COT story for a Currency? A trending increase in the Speculator's COT INDEX with a decreasing Commercial COT INDEX results in a price increase most of the time. Buy long not short A trending decrease in the Speculator's COT INDEX with an increasing Commercial COT INDEX results in a price decrease most of the time.
WATCH for a COT INDEX and price stock options are for speculators. It may not be immediate depending on the trend strength. Follow the speculators when the trend is stock options are for speculators.
Options Trading Service
Stock Option Trading Education. Option Bid Definition: An option bid is the price an option buyer is willing to pay for the option. If the stock option.
What is a ' Speculator ' A speculator is a person who trades derivatives, commodities, bonds, equities or currencies with a higher than average risk in return for a.
The history of stock options in the U.S. can be traced to the early but the first official options exchange (the CBOE) wasn't created until.