Undeniably, Barchart’s screener for unusual stock options volume is an important tool for deciphering market sentiment, especially among the voices that matter. Indeed, the smart money is akin to battleground states. Sure, California and New York represent the nation’s economic engine. But it’s states like Pennsylvania and Georgia that ultimately determine the presidency.
Still, it’s not a perfect analogy because unusual options screeners can be deceiving. For example, put/call ratios provide a potential clue as to the smart money’s motivations. At the same time, derivatives can be bought or sold, thus changing whether the position is debit based or credit based. Moreover, an elevated volume of calls doesn’t necessarily imply bullishness nor does heightened put activity necessarily imply bearishness.
