Tag: TechnicalAnalysis

Introduction: Strategic traders often look for leading indicators to help them predict market trends and shifts in investor sentiment. One such indicator is options strike price data. By analyzing clusters of strike prices where there is heavy options activity, savvy investors and traders can gain insights into market expectations and sentiment. This article delves into the methodologies of using strike price data to forecast forthcoming market trends. Understanding Strike Prices and Open Interest: Strike price data, particularly when combined with open interest—the number of open options contracts at a particular strike—can serve...