Option Indicators

There are two types of option indicator on this site:

Daily option indicator - shows a calculated daily number

Percentile Indicator - shows where the daily number is compared to the last 100 days, percentage wise

PC Ratio

This number is daily Put volume divided by the daily Call volume. If this number reaches an extreme

(check via PC ratio Percentile number or via PC indicator on the IV Charts page)it may indicate a stock direction change

HV20/IV

This is the 20 day Historical Volatility number divided by the daily Implied Volatility of a stock

This number is meant to help you in deciding if the IV of a stock is low.

POI/COI

This is the daily total Put Open Interest divided by Call Open Interest.

This number will show if there are any major shifts in sentiment in a stock

Percentiles

The below listed Percentiles are indicators to help you gauge how extreme the indicators are relative to the last 100 days.

Some stocks may have normally have higher readings than other. I.e. Index Pcratios will be higher than most stock Pcratios because

the indexes have higher Put volumes which are used as protection against baskets of bought stocks.

The Percentile Indicators will disregard these sector/stock characteristics because the percentiles are only measured against themselves.

Percentile IVdaymean

This shows you where the IVdaymean is in percentage terms compared to the IVdaymean's of the last 100 days

If the percentage falls in the top or bottom 5% from a contrarians point of view this extreme region may indicate

a change of direction

Percentile PCratio

This shows you in percentage terms where the PC ratio is today compared to the last 100 days

If the percentage falls in the top or bottom 5% from a contrarians point of view this extreme region may indicate

a change of direction

Percentile POI/COI

This shows you in percentage terms where the Put Open Interest divided by the Call Open Interest is today compared to the last 100 days

If the percentage falls in the top or bottom 5% from a contrarians point of view this extreme region may indicate

a change of direction

Option Writer Optimum Dream Point

This point signifies the stockprice where the option writers (the people who sell you options) would make their

maximum profit. The further the stockprice is at option expiry the worse of the market makers will be.

This indicator helps in predicting a stockprice at option expiry. The closer to option expiry, the more accurate it

should be. It is best used with well traded stocks.

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