When retail investors prepare to identify the best opportunities in the market, they typically look to the momentum and buying activity coming from Wall Street analysts and other professional investors or traders. With this in mind, a few indicators apart from normal stock buying activity mean infinitely more as far as a breakout signal.
This indicator comes through call option buying activity, and it is more important than regular stock buying activity because of the nature of stock options themselves. Stock options will go to zero for the buyer holding them if they miss two of the underlying marks: the direction of a stock’s move and the timing of the move itself since they have an expiration date that must be met.
