Us Stock Intelligence Agent | Eli, Tommy
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.
Speculation was so frenzied last Friday that it was interesting that the whole buying was based on a weak market trend rather than a strong environment. Institutional sweeps occur in areas such as$Apple Inc (AAPL.US) $、$Advanced Micro Devices Inc (AMD.US) $And other large market capitalization technology companies, and$Game Station (GME.US) $(textbook-style shorting the market, not the "victory of retail investors" in the media.) this kind of more speculative companies also include buying changes that continue from the opening to the closing of trading on Friday.$Palantir Technologies (PLTR.US) $，$Nano Dimension Ltd. (NNDM.US) $、$Takeda Pharmaceutical (TAK.US) $Wait. To sum up, the core phase of the earnings season may be an important reason why the rally can continue to stay even when the market is weak.
This weekS & P 500 ETF-SPDR (SPY.US) $Expected volatility upper edge at 390.41 lower edge 375.35，$PowerShares QQQ Trust, Series 1 (QQQ.US) $ExpectationFluctuate along the upper 333.63 and the lower 317.21Small and medium-sized diskRussell 2000 Index ETF (IWM.US) $Expected fluctuations along the upper 221.11 and the lower 208.9. Although the expected volatility of several major futures indices ETF has been sharply raised, it is important to note that even though all the momentum is still hovering there, the index closed in red on Friday (American habit: green up and down), indicating that the rotation within the market is likely to continue, and hot money will continue to look for emerging momentum sectors and continue their long-short showdown there. For now, short-term capital flows are exiting small and medium-sized stocks (value cycle stocks) and turning to large companies, in response to this last ThursdayRussell 2000 Index ETF (IWM.US) $、Russell 2000 value Stock Index ETF-iShares (IWN.US) $The large order of concentrated put options provides a very good reference.
The trend of PUT/CALL ratio in CBOE market corresponds to that of S & P 100. source: CBOE
As for the prediction of whether the market has reached the top, here Hua Jie provides an explanation of the PUT/CALL ratio of the Chicago Board options Exchange corresponding to the trend of the S & P 100. as shown in the chart, the bear market signal will appear in the PUT/CALL ratio of 30 PUT/CALL 100 (0.3) and the S & P 100 ratio reaches 75 PUT/CALL 100 (0.75). At present, our reading PUT/CALL ratio is still between 0.35 and 0.40. The S & P 100 ratio is between 0.50 and 0.65, and none of them have reached the limit of starting a bear market.
So on the whole, in view of the gradual stabilization of the macro environment in 2021, the increase in expectations of economic growth recovery, the political murmur, the uncertainty of the monetary environment and the gradual reduction of market fluctuations, with the expected reduction of trade frictions and fiscal stimulus during Biden's tenure, the market is still likely to maintain a volatile market at a high level in the short term. This week we will continueFocus on finding opportunities for short-term layout in the financial reports of tech giantsAt the same time, we should also be on guard against the risk of volatility overnight. In addition, another key event this week is Bao.Will's speech at 2: 00 p.m. eastern time on the 27thIt may cause some unrest.
Market ETF options change on January 22nd
The trading volume of more than 43.5 million contracts expiring on Friday, 17 per cent higher than the previous average, was slightly higher than the sell volume (19:10). The volume of ETF and individual stocks is relatively high, while the flow of futures index products is moderate.
Changes in individual stock options in various sectors on January 22
The most active plates includeConsumption，Science and technologyPlate而Communications and basic materials plateTrading volume is relatively calm. Of the 3703 stocks with only listed options, 2080 (56 per cent) closed up and 1515 (41 per cent) closed down. Among the 500 stocks with the highest liquidity, 255 have higher implied volatility and 207 have lower implied volatility on the 30th. The stocks that have detected transaction changes include:$Game Station (GME.US) $, $Palantir Technologies (PLTR.US) $, $AMC cinema line (AMC.US) $, $Advanced Micro Devices Inc (AMD.US) $, $Intel Corp (INTC.US) $。
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
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.