Finding a stock that is well-regarded by the market is simple enough; investors can judge the initial sentiment gauge by how the company in question has traded recently, as price action usually tells a deeper story when outperformance has been the norm. Then comes the buying from broader market participants, as momentum gets everyone excited about future opportunities to follow. However, there’s often a more powerful and deeper theme at play.
[content-module:CompanyOverview|NYSE:BROS]By tracking unusual call options activity in a stock, investors can gauge when traders have become specifically bullish in one name, especially as the implications of buying call options are considered. Buying options is not like buying a stock outright, which usually creates a linear relationship. Options carry two main caveats: both leverage and a timing element, due to the fact that they all come with an expiration date.
