Stock Option Investing Signals are a great tool to help you juice your portfolio returns. By fine-tuning your investing signals you can make stock options a constructive contributor to your net worth. Sound good?
Now I’m no OptionsAddict. But I’ve learned a thing or two about trading options over the years. And in the blog post below I’ll share the best stock option investing signals I’ve seen. Plus…
At the end of this article, I’ll also share a little more information about how you can apply these option trading tactics and signals depending on your investing or trading time frame. Now let’s get down to business.
Unusual Stock Option Investing Signals:
The neat thing about stock option trading, is that the stakes are high. Options are highly leveraged and while they can expire worthless, they can also explode to the upside. That’s why…
Paying attention to unusual option activity can be of benefit to stock market (and option) investors and traders. That’s because you know there are smart traders making big bets. And monitoring unusual option activity in the leading stocks can help you get on the right side of this important signal.
My favorite place to keep an eye on unusual stock option investing signals are the CBOE and Schaeffer Research. These two sources give you up to date information about abnormalities in the options market that serve as a great signal.
Now, if you want to go beyond the unusual option activity, you can also look at unusual volume. Volume is an important indicator that can add a lot of context to the moves in the underlying stock. So looking at unusual volume activity can also be an actionable signal.
One of the best ways to get unusual volume activity is from the unusual volumescreener at Finviz. The great thing about Finviz is that you can easily pare this signal up with your favorite technical and fundamental screeners. If you’re looking for ideas, check out these Finviz stock screening videos to get inspired.
Now just one more note about applying these stock option investing signals…
Applying Stock Option Investing Signals:
The one thing to keep in mind, is that option signals are very time sensitive. Depending on the timeline and the strike price of your options the signals will influence the price of the option to a varying degree. If you regularly trade options, this won’t come as a surprise.
On the other hand, if you’re a longer term investor looking to buy common stock, you can use option signals as an indicator of a shorter-term move. When these stock option investing signals start to line up with your fundamental investment analysis you can really start to knock your stock picks out of the park. Sound good?
And By The Way: Stock option investing signals are only a small part of intelligent portfolio management. If you want to learn more about improving your approach to the stock market you might enjoy my eBook below. It’s totally free. And you’ll also get the best tips and tools each week to help you make smarter stock market decision making.