Following Call and Put Volumes for Stocks under LEV Accumulation

[engr_358]

Hi again.....newbie engr_358

I was wondering if anyone checks the call/put option volumes on a stock when it looks like LEV accumulation is underway.....seems like a jump in option volume would confirm that movement in the stock is about to occur.

Here is a related post from SeekingAlpha....

http://seekingalpha.com/article/1108541-top-bullish-stocks-on-friday-facebook-baidu-and-research-in-motion-with-unusual-call-activities?source=email_rt_mc_focus

Thanks,

engr_358

[Pascal]

Yes, I believe that we should watch the put/call ratio before entering a new position, but I do not do it.

Here is a link to an interesting article regarding the shrinking volume and options trading.


Pascal

http://www.mcoscillator.com/learning_center/weekly_chart/the_disappearing_volume/