Talk:Options

Question: How does the supply/demand for a given option impact the related strategies and pricing for that option?

-Jeff M

Jeff Manley 21:25, June 19, 2010 (UTC)

http://www.marketintellisearch.com/articles/1024243.html

GNK options saw interesting call activity today. A total of 263 put and 2,796 call contracts were traded raising a low Put/Call volume alert. Today's traded Put/Call ratio is 0.09. There were 10.63 calls traded for each put contract.

A significant increase in the trading volume of a stock's option often is a precursor of movement by the underlying stock. In such instances, Put/Call Ratio can be used as an investor sentiment indicator, where a high ratio implies that the overall investor sentiment is bearish and a low Put/Call ratio implies that the overall sentiment is bullish.