options trading

The Noisy Reality of Unusual Options Activity

UOA revolves around the trading of option contracts at volumes significantly higher than their daily averages. The allure of UOA lies in its potential to uncover market insights and potentially ride the coattails of informed traders -It is data that we tracked and traded with for a number of years in the Trader’s Thinktank. However, as we'll explore, this approach has lost some of its luster.

The Perils of 0DTE Options Trading: Why Day Traders Should Think Twice

0DTE (Zero Days to Expiry) options have gained popularity as a high-risk, high-reward trading instrument in recent years, especially with the advent of daily expirations in SPX. These ultra-short-term options promise quick profits, but as we'll explore in this article, they come with significant dangers that can leave even seasoned day traders with a blown portfolio.

Triple Witching and SPX 0DTE: Unveiling Market Mysteries Amidst Soaring Options Volumes

A recent phenomenon that has been making waves is the peculiar performance of the S&P 500 on Triple Witching days. Over the last 15 occurrences, the S&P 500 has experienced declines in a staggering 13 instances. This raises questions and piques the curiosity of market participants and analysts alike. What could be driving this pattern, and how does it intertwine with the surging volumes in the world of options trading?

Options Flow Trading: More Noise Than Signal

Options Flow trading has gained popularity in recent years, with various sites and tools attempting to capture and analyze the data. For multiple years, options flow data and option sweeps were something that we tracked in the Trader’s Thinktank. However, after tracking this data for 6+ years, it's clear to me that options flow and option sweeps have lost the edge they once provided. There are significant reasons why following the options flow is no longer worth your time.

Difference Between Options, Futures, and Stock Trading: A Comprehensive Guide

New traders often ask: What is the difference between options, futures, and stock trading? In this article, learn the differences between options, futures, and stock trading, and discover why new traders should consider futures for index trading.

5 Tips for Picking the Right Strike Price for Day Trading and Swing Trading Options

Picking the right strike price is crucial to options trading success. Follow these 5 tips for day trading and swing trading options. Learn more with the Options Mastery Course.

Bid Size and Ask Size on Option Contracts - How You Can Use It To Your Advantage

When bid size is radically different from the ask size, it can represent a supply and demand imbalance. Bid size and ask size can help traders gauge where to place orders and in turn, get quicker fills.

Options Implied Move - What Is It?

During each earnings season, traders and investors often focus their attention on a crucial metric: the "options implied move" or "expected move" of a stock's earnings report (ER). This metric is vital for making informed decisions in the world of trading. In this article, we will delve into the concept of the options implied move, explaining how it's calculated and why it matters.