Us Stock Intelligence Agent | Eli, Melody
This article summarizes the latest large order changes in the option market for you.
By monitoring these market data, investors can use this often neglected information and formulate investment strategies.
Wednesday's selling effectively dispelled some of the short-term overheating in the market. Although the related products of the index spend most of their time above the average cost VWAP, the trend of the market is still somewhat ambiguous, and the buying power of institutions has not effectively followed up all day. The operation of aggressive speculation in the options market during the trading day mainly revolves around the small and medium-sized stocks:$Vroom (VRM.US) $, $Penn National Gaming (PENN.US) $, $room.Auto Parts Network (PRTS.US) $, $Virgin Galactic Holdings Inc (SPCE.US) $, $NIKOLA CORPORATION (NKLA.US) $。
If you want to put the investment strategy, the intelligence chief thinks that we should look at the market segmentation in the short and medium term. For example, the better risk and return in the short-term operation is, of course, the potential short-term rebound during the market downturn (but only within days or doomsday bands). After all, for these stocks, there will be less news or systemic risk at the head of the market as a whole.
For large-band medium-term operation, the trend of plate rotation has been initiated ($General Motors Co (GM.US) $, $General Electric Co (GE.US) $, $Ford Motor (F.US) $Now is not the right time to catch up some stocks with overheated kinetic energy. Just like if you followed up yesterday,$Boeing Co (BA.US) $There is no doubt that there will be a reversal and be trapped. So here the intelligence gentleman still warns the students to keep paying attention to the changes in the market funds, especially those that have not been started, the bottom construction is completed and the risk below is relatively low. Of course, the change of funds does not mean that individual stocks can take off immediately, more will accumulate potential energy to wait for a breakthrough, if the change continues for several trading days in a row, then we can still find our own market even in the epidemic environment.
To sum up, the current market is still a market in which stocks pick up money and grab money under the downmarket risk of hedge protection. In the short term, mood is the main role of the market structure, and it is also an important reference to determine our appropriate intervention. Patience and self-discipline are essential for us. Observe as much as possible in the short term to harness these capital flows and take advantage of the situation, and in the medium term it will be laid out calmly until the market completes its potential pullback.
Changes in ETF options in the market (November 18)
Trading volume in the options market reached 36.4 million contracts on Wednesday, 20 per cent higher than the recent average, with subscriptions slightly higher than the sell volume (12:7).
Changes in individual stock options in different sectors (November 18)
The most active sectors include public utilities, industry and consumption, while technology and consumption are relatively calm.
Of the 3634 stocks with only listed options, 1000 (28 per cent) closed up and 2407 (66 per cent) closed down. Among the 500 stocks with the highest liquidity, 188 have higher implied volatility and 271 have lower implied volatility on the 30th.
Science and technology stock
Industrial stock
Cyclical consumer stock
Financial stocks
Communications Unit
Medical and Health Unit
Energy stocks
Real estate stock
Building Materials Unit
Defensive consumer stock
Public utilities unit
The option tool is flexible and easy to use, and it is considered to be the most perfect trading tool in the financial market so far. small funds can quickly accumulate wealth through accurate judgment using non-linear leverage. large funds can achieve stable returns through the comprehensive application of multiple strategies across bull-bear and shock markets. But we also need to see the buyer's risk of options (ordinary investors are careful to be sellers of options, with limited returns and unlimited losses):
1. Nonlinear huge leverage will suffer huge losses if it is faced with going in the wrong direction.
2. Volatility drops, and the other side may lose money.
3. The state of mind is easy to be out of balance with big fluctuations.
4. Time is the enemy of option buyer.
5. Stock thinking is serious. Stock thinking is just want to do long, will not short, fall more want to bottom, trap, ignore and so on rebound, and even some people add positions to lower costs, the result is deeper and deeper to zero. If you don't change your mind, it's dangerous to make options.