Caspian101
5 posts
msg #121465
- Ignore Caspian101 |
9/8/2014 11:37:24 AM
Hi, I'm just curious about something. Is it possible to use price targets of calls and puts in options to understand where the people that trade options think that a stock price will end up?
If so, is this a viable way to lead into a stock trading strategy, using that forecast to predict returns? Has anyone tried anything like this? (Please note, I am not talking about options trading itself, just using options pricing to understand where the market believes that individual stock prices will be in a week/month etc.)
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Kevin_in_GA
4,599 posts
msg #121469
- Ignore Kevin_in_GA |
9/8/2014 2:52:01 PM
Google "option pain" - lots of folks believe that the market makers will drive the price to the point where options are worth the least. That is one prediction that, if true, you can use to your advantage.
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Caspian101
5 posts
msg #121472
- Ignore Caspian101 |
9/8/2014 4:24:33 PM
Thanks Kevin, I will take a peek.
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