Trading with the OVI

In this section I summarize my proprietary OVI indicator. For more details and video tutorials go to my website, www.ovitraders.com.

While options enable us to create strategies, there is a lot of intelligence we can use directly from options transaction data.

For many years academic studies have suggested that options data can at times be a bellwether for future stock price movement. With my own academic background I sought to investigate whether this was an anomaly or a phenomenon. I was subsequently contracted by one of the major exchanges to research how their own transaction data may relate to future stock price movement.

The answer to their question was not as straightforward as they or other exchanges would like. Options ...

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