Many of you may have come across the term unusual options activity. But do you know what exactly it is?
If you are into trading, then you must keep a check on unusual option activity. Well, there are many reasons to do that which we will be discussing in this post. You can make use of unusual options tracker to make your task easier.
The world of trading is not an easy place. No matter, how experienced you are, there is always a chance of things going wrong for you. This is why you should keep a close check on the market and everything related to it.
How to Trade Unusual Options Activity?
When you come across an unusual options activity, you need to first determine whether the trade is bearish or bullish. In this case, you will have to check whether a put or call was traded. At the same time, you also need to check whether it traded on ask or bid.
The Unusual Options Activity Trading Plan
There is no secret behind becoming a successful trader. To make more profits in this field you should follow unusual options activity. This is one of the most profitable techniques out there. It also gives you great trading ideas that can benefit you in many ways. It will also help you to form the right trading strategy. These are some of the main reasons why you should keep a check on the unusual options activity.
Unusual options activity tells us about what smart money is doing. But they are not always correct. Sometimes, they can turn out to be misleading. So you shouldn’t be 100% dependent on it.
A smart trader will always take his time to analyse the situation on his own, before taking any action.
Unusual options activity is the anomalies that take place in the order of the options. You should keep a check on it, but you are advised not to depend on it completely. That’s because sometimes, they can turn out to be misleading. This is why you should keep your senses open.