TexasRangersFan
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I am still learning.
I set up a paper trade simulator on TD Ameritrade / Think or Swim.
I opened a link for options and looked up SPX.
Under the drop down bar it has a link for Today's Option Statistics.
It does not specifically identify SPX in the dropdown box so it is misleading to me if it relates to SPX or the entire option markets.
It says that there were 570,421 Calls and 713,417 Puts.....for a total of 1,283,838.
Was that just for SPX ? I wonder how the volume relates to an average daily volume.
I am familiar with the DJI, but not option contracts.
Also....there were more puts than calls. About 25 percent more.... does that suggest that the financial consensus thinks that the market is going to do down ?
Just an idea.
Also, how important is the volatility for an option ? It appears that the further out you go, the volatility declines. What would the message be if it increased or it increased at a faster percentage that other options that may only increase by .1, .2,.3 percent with each additional contract ?
The DELTASs......5-10 , 11-15.........do they measure volatility as well ?
Would it be easy to say that the betas that are higher represent higher risk ?
What is the benefit of following betas over a volatility percentage ?
Thanks.
I set up a paper trade simulator on TD Ameritrade / Think or Swim.
I opened a link for options and looked up SPX.
Under the drop down bar it has a link for Today's Option Statistics.
It does not specifically identify SPX in the dropdown box so it is misleading to me if it relates to SPX or the entire option markets.
It says that there were 570,421 Calls and 713,417 Puts.....for a total of 1,283,838.
Was that just for SPX ? I wonder how the volume relates to an average daily volume.
I am familiar with the DJI, but not option contracts.
Also....there were more puts than calls. About 25 percent more.... does that suggest that the financial consensus thinks that the market is going to do down ?
Just an idea.
Also, how important is the volatility for an option ? It appears that the further out you go, the volatility declines. What would the message be if it increased or it increased at a faster percentage that other options that may only increase by .1, .2,.3 percent with each additional contract ?
The DELTASs......5-10 , 11-15.........do they measure volatility as well ?
Would it be easy to say that the betas that are higher represent higher risk ?
What is the benefit of following betas over a volatility percentage ?
Thanks.
